Although the taxation rate is low, and there are various reliefs to make use of on corporate and personal taxation in Singapore, the IRAS is quite strict if it detects any errors in filing tax returns on part of individuals or companies in Singapore.
If the error, omission or discrepancy in the tax return was made without any intention to evade taxes, the taxpayer may face a penalty up to 200% of the amount of tax undercharged, be fined up to $5,000, and/or be imprisoned up to three years.
If the intention was to evade taxes, the taxpayer may face a penalty up to 400% of the amount of tax undercharged; be fined up to $50,000; and/or be imprisoned up to seven years.
Engaging Singapore Tax Accounting Services for your IRAS Audit needs can help you
Avoid IRAS Audit altogether
Engaging Singapore Tax Accounting Services at the outset can help you file your tax returns accurately so as to stay clear of audits. In the event you missed filing or made mistakes, and are now facing IRAS Audit, we can assist you with the requisite actions as well.
File your taxes accurately with a complete picture of all types of taxable income in Singapore.
File objections with IRAS
Companies that do not agree with the tax assessment raised by IRAS may file an objection to have the tax assessment revised. These objections must be filed within two months from the date of the Notice of Assessment (NOA). If no objections are received within that period, the assessments will be treated as final.
But do note that companies have to pay the tax stated in the NOA within one month from the date of the NOA even if they object to the assessment. Tax experts at Singapore Tax Accounting Services can help you file these objections with IRAS as well should the need arise.
Depending on whether you are incorporated in Singapore, how much revenue you bring in annually and the reliefs you claim, there are specific forms to follow when filing tax returns.
Here is a guide to e-Filing of Corporate Income Tax Returns Forms C-S and C that will give you some clarity.
Get professional representation in front of IRAS
If tax evasion cases are severe, the IRAS will launch an investigation. The taxpayer under investigation is expected to corporate, have to allow IRAS officials access to premises and information and produce records as per the Income Tax Act and the GST Act.
In such cases, IRAS mandates that the affected taxpayer appoint a professional adviser to represent it/him/her during the investigation. Singapore Tax Accounting Services can help you take on this role and guide in these circumstances by giving you professional representation in front of the IRAS.
Navigate IRAS audits effectively with guidance from experts
Engage us now if you are facing an IRAS Audit in Singapore. We can represent you in front of IRAS and guide you through the process.