Tax Compliance Article

What if I am late in filing my company returns?

Companies who do not file their tax returns, audited/unaudited accounts and tax computations by due date (i.e. 30 November or 15 December for Form C and C-S/ 15 April or 18 April for Form P) or late filers will face the following enforcement actions:

- composition fee imposed

- summons to attend court

- other legal actions.

What if I have received a letter of offer of composition?

Your company may receive a letter from the Inland Revenue Authority of Singapore (IRAS) requesting the business to file the tax return, audited/unaudited accounts and tax computation and pay the composition fee within 14 days from the date of the letter. The maximum composition fee imposed is up to $1,000, depending on the past filing and payment records.

Our comments:

Such occurrences are not uncommon and we have represented several businesses and corporate entities to liaise with the IRAS and to help these businesses and corporate entities file the tax returns in such situations. In most instances, the IRAS would allow an extension of the deadline so that we can help you to prepare and to lodge your late tax return.

If you have several years of assessment of overdue returns, we can also help you manage your tax compliance obligations e.g. by arranging for a realistic timeline to file such returns and requesting for instalment payments for your unpaid taxes and/or penalties (if any). We would have to add that all these liaisons with the IRAS are dealt with on a case-by-case basis.

It is possible that once accurate tax computations for your company has been completed, you will find that you are actually entitled to refunds for each of those years of assessment. Hence, getting those tax returns done accurately could mean money in your hands as well as weight off your shoulders, as has been the case for several of our satisfied clients.

What if I have received a Summons?

You may have already received a summon from the IRAS and a date is fixed for your company officers/directors to attend Court. It is advisable to comply with the summons and have the relevant personnel attend Court as requested by the IRAS. Every day of delay reduces the chance of us helping you to withdraw the particular summon. IRAS can continue to issue summons and penalties up to 2 times your unpaid taxes.