The large majority of compliant taxpayers exerts an influence on societal behaviour and creates pressure on the minority of errant taxpayers to turn compliant.
The Four Taxpayer Profiles
1. Voluntarily Compliant
Majority of taxpayers will comply voluntarily with their tax obligations. IRAS proactively provides the necessary assistance and services to enable them to do so.
Examples: e-Services, No-Filing Service initiative, frontline services and simplification of filing via the Auto-inclusion of Employment Income Scheme
There are some taxpayers who want to comply but may require some assistance to do so. For them we educate to prevent non-compliance.
Examples: mobile service reminders, public communications and dialogues with trade associations
Some may not have given sufficient attention to their tax obligations. We detect and deter recurrence of mistakes made by this group.
Examples: conduct of audit programmes and voluntary disclosure programmes to encourage correction of errors
A minority of taxpayers intentionally cheat or evade tax. IRAS will not hesitate to take strong actions against them and penalise this group of errant taxpayers.
Examples: deterrent penalties, enforcement, investigation and prosecution