If you are selected for audits

IRAS audits Stamp Duty compliance to ensure that the amount of Stamp Duty paid on a document is adequate and timely.  Being selected for an audit does not necessarily mean that you have made a mistake. Our audit programme is to:

• Identify taxpayers who have made mistakes in their stamping
• Create an audit presence in the community to deter non-compliance by other taxpayers
• Educate taxpayers on their tax obligations and how to comply
• Identify tax laws, policies and processes where we can simplify or clarify

On this page:

• What can I expect during an audit? 
• What does IRAS expect from me during an audit? 
• What happens at the end of an audit? 
• What can I do to improve on my compliance? 
• Recent audit activities and results 
• What are the Stamp Duty rates
• To stamp my document online

What can I expect during an audit?

How is an audit conducted?

An audit commences when we write to you to request information or documents for our verification.  Subsequent correspondence may be by way of letters, phone calls or emails.

Examples of the type of information or documents we may request from you :

• For Transfer of Property by way of Gift
  • Copy of the executed instrument of transfer
  • Copy of valuation report of the property
  • Applicant's opinion of the market value of the property, as at date of transfer
• For Trust Deed / Declaration of Trust
  • Copy of the trust instrument
  • Relationship between the trustee and beneficiary
  • Date on which the property or share(s) was acquired
  • Reason(s) for acquiring the property or share(s) in the name of the trustee
  • Documents to support that the beneficiary is the beneficial owner of the property or share(s), as at the time of acquisition
  • Applicant's opinion of the market value of the property, as at date of instrument

For field audit, it is the responsibility of our officers to show their identity by producing their staff passes or authority passes upon arrival. They should also explain the reasons for their presence at your premises.

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What does IRAS expect from me during an audit?

We would seek your cooperation in:

1. Providing us with full access to your premises, records and documents
2. Allowing us to make copies or obtaining extracts of records and documents
3. Providing us with timely, complete and accurate replies to our request for information.

Under the Stamp Duties act, a taxpayer found guilty of false or misrepresentation, or deliberate omission of information may be fined up to $1,000 and jailed up to six months.

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What happens at the end of an audit?

If the audit shows that you have not complied fully with your Stamp Duty obligation, we will issue a revised Notice of Assessment to you.  The Notice of Assessment will set out the amount of Stamp Duty, penalty or any other charges that may be imposed.

If you do not agree to our assessment, you may object in writing within 30 days from the date of the Notice of Assessment.  You are advised to provide supporting documents if any, to support your objection.  Even if you have filed an objection, Stamp Duty, penalty or any other charges must be paid by the specified deadline. 

After we have reviewed your objection, we will write to you to inform you of our decision.
 
In the event that you are not satisfied with our decision, you may appeal against the decision to the High Court.  The appeal must be carried out within 21 days from the date of our written decision. 

The appeal must also be served to us with 21 days from the date of our written decision

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How can I improve my compliance with Stamp Duty?

1. Consider setting aside money  for payment of stamp duty before the document is executed.  Do not delay stamping of your document. Reasons such as “pending funds from disposal of other asset(s)” are not accepted.  We take a very serious view of late and non-stamping.  Penalties of up to four times the deficient duty can be imposed for late or non-payment of Stamp Duty.
2. If your document is stamped by a third party (e.g. by your lawyer or agent), and you have been given a stamp certificate, you can do an online check on the authenticity of the stamp certificate given. For more information, please refer to How to verify the authenticity of my stamp certificate. 
3. Practise good internal controls in your company. For example, stamping should be done by qualified and responsible staff and preferably not temporary clerks.  Counter checks on data entry should be done.  This will help to ensure accuracy in data keying so as to minimise the need for subsequent stamp certificate amendment or refund.

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Recent audit activities and results

We may impose stiff penalties of up to four times the amount of deficient duties for non-compliance.  Here are some examples of non-compliance.  For a list of prosecuted cases, please click here. The penalties were decided after considering the mitigating circumstances in each case:

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