6-79. In Singapore, contracts between parties are made legal when stamp certificates are purchased from tax authorities

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6-79. In Singapore, contracts between parties are made legal when stamp certificates are purchased from tax authorities for the contract. There was a housing agent who pocketed the money collected for the stamp certificates and made fake certificates. He also declared shorter rental period to understate the stamp certificate amount payable to tax authorities.

He was subsequently caught and fined, his license revoked and was jailed for two weeks.

a. Using the fraud triangle, explain how it applies in the above situation.

b. How do you think the tax authorities found out about such a fraud?

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Forensic Accounting

ISBN: 9781292059372

1st Global Edition

Authors: Robert J. Rufus, Bill Hahn, Laura Savory Miller, William Hahn

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