IRAS penalizes over 4,700 companies for late or missed tax filings in 2023
The total penalties incurred from failure to file tax filings reached over $4.9m.
In 2023, over 4,700 companies were prosecuted for late or non-filing of Corporate Income Tax (CIT) Returns, incurring penalties worth over $4.9m, the Inland Revenue Authority of Singapore (IRAS) reported.
This year, 262,000 companies are expected to file CIT Returns including those with no business activities or those in a loss position. By 30 November, directors must also file their Year of Assessment (YA) 2024 CIT Returns.
IRAS recommends that companies file their returns ahead of time to avoid penalties and utilise tools such as the Basic Corporate Income Tax Calculator.
Companies who adopt software with filing capabilities will also get an automatic extension of the CIT filing due date by 15 days to 15 December.
Companies that fail to file CIT Returns on time can be fined up to $5,000, whilst those failing to file for two or more years may face a penalty twice the amount of tax assessed, in addition to the fine.
Company directors who fail to provide financial information requested by IRAS for companies that do not file their returns may face heavier penalties of up to $10,000 or be required to attend court.
IRAS said that failure to attend court could lead to a warrant of arrest issued against the company director. In 2023, 1,690 court summons were issued to directors who failed to comply with these notices.
Companies requiring assistance with the YA 2024 tax filing can visit the IRAS website or watch IRAS’ list of e-learning videos. They can also ask for support from IRAS officers via live chat, call the helpline at 1800 356 8622, or contact IRAS via myTax Mail.
In addition, IRAS said that companies that discover errors in their previous CIT Returns should initiate a voluntary disclosure to avoid hefty penalties.