If you have failed to file or filed late

• If you have failed to file or filed late 
• What should I do if I received an estimated Notice of Assessment and/or Demand Note 
• How is Late Submission Penalty computed  
• Can I appeal for waiver of penalty 
• What will happen if I do not pay the tax and penalty by the Demand Note due date  
• What should I do to get the bank released as agent 
• What should I do if I am stopped from leaving Singapore 
• What should I do if i receive summons 
• What should I do if I receive warrant of Arrest 
• How to pay the late submission penalty

If you have failed to file or filed late

While the majority of taxpayers file their taxes on time, without any enforcement action, each year, a minority fails to do so. Those who have failed to comply with their filing obligation will be penalised.

You have to file a NIL return even if there is no business done during the accounting period as GST is a self-assessed tax.

If you did not file your business’ GST F5 by the due date, IRAS may pursue the outstanding return(s) by:

• Issuing an estimated Notice of Assessment and imposing a 5% late payment penalty on the estimated tax (Demand Note);
• Imposing a Late Submission Penalty 
• Summoning the person(s) responsible to Court
• Issuing a Warrant of Arrest 

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What should I do if I received an estimated Notice of Assessment and/or Demand Note

You have to e-File the GST Return to revise your estimated Notice of Assessment.

Until the GST return has been filed, the estimated tax will remain payable. You may refer to our step-by-step guide on how to revise the estimated Assessment. 

Please note that an estimated Assessment will only be revised if your GST F5/F8 Return is submitted within five years from the end of the accounting period, regardless of any objection, for accounting periods ending on and after 1st January 2007. For accounting periods ending before 1st January 2007, the estimated Assessment will only be revised if your GST F5/F8 is submitted within six years from the end of the accounting period. 

Example 1:

Business X has not submitted the GST F5/F8 Return and payment for the accounting period ending 30 Sep 12 by 31 Oct 12. Assuming that the estimated GST is $3,000, a late payment penalty of $150 (i.e. 5% x $3,000) is imposed.

On 10 Nov 12, Business X declared its actual GST liability of $1,300. The GST and the late payment penalty will be revised to $1,300 and $65 (5% penalty on $1,300) respectively.

Example 2:

Business Y has not submitted the GST F5/F8 Return and payment for the accounting period ending 30 Sep 12 by 31 Oct 12. Assuming that the estimated GST amount is $3,000, a late payment penalty of $150 (i.e. 5% x $3,000) is imposed.

On 10 Nov 12, Business Y declared its actual GST liability of $5,000. The GST and the late payment penalty will be revised to $5,000 and $250 (5% penalty on $5,000) respectively.

Example 3:

Business Z has not submitted the GST F5/F8 Return and payment for the accounting period ending 30 Sep 12 by 31 Oct 12. Assuming that the estimated GST amount is $3,000, a late payment penalty of $150 (i.e. 5% x $3,000) will be imposed.

On 10 Nov 12, Business Z declared its actual GST liability of $0. Both the GST and the late payment penalty will be revised to $0.

IMPORTANT: A NIL return is required to be filed even if there is no business done in that period.

Example 4:

Business W submitted the GST F5 Return for the period ending 31 May 05 on 5 Jun 12. The Assessment will not be revised as more than 7 years have passed, i.e. 7 years and 5 days.

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How is the Late Submission Penalty computed

A penalty of $200 will be imposed for every completed month that a GST F5/F8 Return remains outstanding. The maximum penalty for each GST F5/F8 Return is $10,000.

Example:

Business J submitted the GST F5 Returns for the periods ending 31 Dec 10 and 31 Dec 11 respectively on 20 Jun 12. The late submission penalties are calculated as shown:

IMPORTANT: A NIL return is required to be filed even if there is no business done in that period.

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Can I appeal for waiver of penalty

Generally, penalties will not be waived. 

However, IRAS may consider your appeal if your business fulfils the following conditions:

• F5/F8 has been submitted;
• The full outstanding tax has been paid;
• Your business has filed and paid on time for the past two years

Please call (65) 6356 7012 to appeal for waiver with supporting documents (if any).

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What will happen if I do not pay the tax and penalty by the Demand Note due date

We may, without prior notice, recover the outstanding tax by:

• Appointing your business’ bank, tenant, lawyer, etc. as agent to pay the money to us;
• Stopping you, the business owner (of a sole-proprietorship/partnership), from leaving Singapore; or
• Taking legal action.

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What should I do to get the bank released as agent

Your business’ bank(s) will be released as agent only after the outstanding tax and penalty are paid. Therefore, this can be either:

• After the bank remits the outstanding amount to IRAS. The release may take a few days to process, therefore, to expedite the release, please call (65) 6356 7012; or
• After you have arranged to pay the tax and penalty directly to IRAS. If you have done so, please call (65) 6356 7012 to inform us so that the appointment can be released as soon as possible.

Please note that banks do not process requests for release on Saturdays, Sundays and Public Holidays.

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What should I do if I am stopped from leaving Singapore

You have to pay your business’ outstanding tax and penalties before travelling. You can only pay in the form of cash/cashier's order if you are already at the Customs checkpoint. You will not be allowed to leave Singapore until payment is received.

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What should I do if I receive a Summons notice

If we do not receive the required documents or the late submission penalty by the due date, a summons will be issued to you to attend Court on a specified date.

In Court, you will have to take a plea after the charges are read. Upon conviction, you will be fined up to $5,000. You will still be required to file your business’ tax return, failing which further prosecution actions may be taken.

If you wish to avoid attending court, please do the following, at least one week before the Court date:

• File your business’ F5/F8 return; AND
• Pay the composition fee using the enclosed payment voucher

If you need more time to file and/or pay, please:

• Attend Court on the mention date to appeal for postponement; AND
• File your business’ F5/F8 and pay the summons fee at least one week before the next Court mention date.

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What should I do if I receive a Warrant of Arrest

A Warrant of Arrest is a Court order authorising the police to bring a person into custody due to the offence committed. A Warrant of Arrest may be issued to you if you have not filed your business’ tax return; have not paid the composition fee; and did not attend Court on the assigned date.

After you receive a Warrant of Arrest, you should:

1. Get a new Court date by reporting immediately to the Warrant Enforcement Unit at Level 1, Police Cantonment Complex Block A (391, New Bridge Road), with:
   • Your Identity Card/Passport; AND
   • A bailor, that is, a person who takes responsibility for you in the event that you do not appear in Court, by pledging a sum of money as bail. The bailor should be a Singapore Citizen who is at least 21 years old.
2. File your business’ F5/F8 and pay the composition fee before the assigned Court date.
3. Attend Court on the assigned date. If you fail to attend Court on the assigned date, your bailor will need to explain to the Court the reason for your absence. The bailor may then have to pay the bail amount to the Court.

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How do I pay the late submission penalty

• By Cash at any Singapore Post outlet
• By NETS / acceptable cards at AXS Machines and S.A.M. Please enter the payment voucher number 
• By Internet Banking. Please enter the payment voucher number
• By Singapore cheque, crossed and made payable to the "Comptroller of Goods & Services Tax", with your business’ full name, Tax Reference No. and Summons No. written on the reverse side of the cheque. Please send in with the payment voucher number 

Important Notes:

1. To check if your payment has been credited, please log in to myTax Portal and select "View Account Summary" after three working days.
2. If you pay the late submission penalty without filing your tax return, prosecution actions may be taken.

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