Late Filing or Fail to File Income Tax Form
For companies that do not to file their income tax return or fail to file on time, IRAS will take action against these companies.
Actions against Companies for Late/ Non-Filing
If a company does not file the Form C-S/C, financial statements and tax computation, IRAS may:
1. send an estimated notice of assessment (NOA) and this must be paid within one month.
2. impose a composition fine not more than SGD 1,000.
3. issue a Section 65B(3) notice. Upon receipt, the company directors have 21 days to provide the required documents to avoid being summoned to court.
4. summon the people responsible for running the business to the court.
If the company did not file its tax for two years or more, IRAS could double the penalty imposed plus a fine not more than SGD 1,000.
1. Receiving an Estimated NOA
If a company does not file the Form C-S/C, financial statements and tax computation, IRAS may send an estimated NOA.
Once the company receives the estimated NOA, they should:
- settle the tax amount within one (1) month from the date of NOA even if the company disagrees with the estimated amount or intends to file an objection. Otherwise, penalties will be levied for late payment of tax bill.
- file an objection (after payment of the estimated tax) within two (2) months from the date of NOA.
- file the Form C-S/C, financial statements and tax computation, together with the objection letter. IRAS will then re-assess and revised the estimated tax payable. This will speed up the tax assessment process.
Please note that IRAS will not revise the estimated tax in the event that the company did not file the Form C-S/C, financial statements and tax computation together with the objection letter.
2. Outstanding Tax Return Notice and Composition Fee
Companies may receive a notice from IRAS on the above.
Once the company receives this notice, they should file all required documents as soon as possible with IRAS and pay the composition fee before the due date.
3. Appeal for Waiver of Composition Fee
For exceptional circumstances, IRAS may waive the penalties imposed on the company.
For IRAS to consider an appeal, you must submit all required documents, have no late tax filing for the past two years and make every effort to file tax returns on time in the future.
4. Summons Notice
IRAS will summon the directors to attend court if the company fails to submit the required documents and/or pay the composition fee by the due date.
5. Failure to File for Two or More Years
If a company fails to file the tax returns for two or more years, the directors will receive a summon to the court.
This may result in a conviction in court and required to pay a penalty up to twice the tax amount and a fine up to SGD 1,000.
Should you need assistance or would like to find out more about tax services in Singapore, please send an email to Contact@AccountingSolutionsSingapore.com, and our business advisor will contact you.