Companies under Liquidation
Companies under Judicial Management/Receivership
Frequently Asked Questions (FAQs) on e-Services for Companies under Liquidation/Judicial Management/Receivership
Companies under Liquidation
Introduction
If the company has commenced liquidation, be it voluntary or compulsory, the liquidator is required to inform IRAS and submit the notices concerning the appointment of liquidators (Notice of Appointment and Situation of Office of Liquidator). He also has to submit all outstanding Income Tax Returns (Form C/ Form C-S) and accounts* of the company in liquidation up to the date of liquidation, file the subsequent Receipts and Payments for the liquidation period and ensure that the company’s outstanding tax matters are resolved before completion of the liquidation process.
Section 59(2) of the Singapore Income Tax Act sets out the duties of liquidators with regard to the tax matters of companies which are in liquidation. It provides that the liquidator shall not distribute any of the assets of the company in liquidation to its shareholders unless he has made provisions for the payment in full of any tax which may be found payable by the company.
*If the company files Form C-S, the accounts and tax computation are not required to be submitted together with Form C-S. However, they are to be prepared and retained for submission upon IRAS’ request.
Filing Procedure for Receipts and Payments by Liquidators Prior to 1 Jul 2011
Currently, the liquidator will file the Account of Receipts and Payments with IRAS every half yearly; and the liquidator’s Final Accounts relating to the Final Meeting immediately after the Final Meeting1.
IRAS will assess the company in liquidation based on the filings made and issue the Notice of Assessment to the liquidator accordingly.
Before the liquidator proceeds with the completion of the liquidation process, which may involve calling the Final Meeting, he may request for a Tax Clearance letter from IRAS confirming that there are no outstanding tax matters and tax liabilities.
Streamlined Filing Procedure for Receipts and Payments by Liquidators with effect from 1 Jul 2011
IRAS notes that most companies in liquidation receive little or no income and the requirement to file an Account of Receipts and Payments with IRAS every half yearly throughout the process of liquidation may not be cost effective for the companies. The high volume of the Account of Receipts and Payments received by IRAS has also delayed our response to requests for tax clearance from liquidators.
As part of IRAS’ continuous effort to improve and simplify our procedures, the filing procedure of Receipts and Payments by liquidators has been streamlined. Under the Streamlined Filing Procedure which takes effect from 1 Jul 2011, the liquidator is required to file the Declaration of Receipts and Payments with IRAS instead of the half yearly Account of Receipts and Payments, as follows:-
- For a company in liquidation that has receipts, the liquidator will have to file a Declaration of Receipts and Payments (With Receipts) (48KB) with IRAS on a yearly basis. The last Declaration of Receipts and Payments will have to be filed anytime within six months before the Final Meeting.
- For a company in liquidation that has no receipts, the liquidator will have to file a Declaration of Receipts and Payments (With No Receipts) (28KB) with IRAS within six months before the Final Meeting or once every four years, whichever is earlier.
With this Streamlined Filing Procedure, the requirement to file the Account of Receipts and Payments with IRAS on a half yearly basis under the Filing Procedure for Receipts and Payments by Liquidators Prior to 1 Jul 2011 will be phased out.
The Streamlined Filing Procedure will apply to all existing companies under liquidation as at 1 Jul 2011 and companies that commence liquidation on or after 1 Jul 2011. However, companies under liquidation which will hold their Final Meeting within six months from 1 Jul 2011 will not need to adopt the Streamlined Filing Procedure. These companies can continue with their filing according to the Filing Procedure for Receipts and Payments by Liquidators Prior to 1 Jul 2011.
Please click here for Filing of Receipts and Payments - Differences between the Streamlined Filing Procedure and Filing Procedure Prior to 1 Jul 2011 (74KB).
Guidelines and Examples on Filing Requirements
Summary of Filing Requirement for Declaration of Receipts and Payments (39KB)
Example 1: Filing of Declaration of Receipts and Payments for Companies with Receipts (42KB)
Example 2: Filing of Declaration of Receipts and Payments for Companies with No Receipts (38KB)
Example 3: Filing of Declaration of Receipts and Payments for Companies which Transit from Having Receipts to Having No Receipts (45KB)
Example 4: Filing of Declaration of Receipts and Payments for Companies which Transit from Having No Receipts to Having Receipts (14KB)
Frequently Asked Questions (FAQs)
For more details, please refer to our FAQs (53KB) on the Filing of Declaration of Receipts and Payments under the Streamlined Filing Procedure.
Contact Us
Please contact us if you need assistance or clarification on the Filing of Declaration of Receipts and Payments under the Streamlined Filing Procedure:
- Email address:
ctmail@iras.gov.sg
- Call us (8am to 5pm from Mondays to Fridays):
Companies 1800-356 8622
Companies under Judicial Management/Receivership
If the company is under judicial management/receivership, it will still be required to submit the Income Tax Return (Form C/ Form C-S), accounts and tax computation* to IRAS yearly.
*If the company files Form C-S, the accounts and tax computation are not required to be submitted together with Form C-S. However, they are to be prepared and retained for submission upon IRAS’ request.
Frequently Asked Questions (FAQs) on e-Services for Companies under Liquidation/Judicial Management/Receivership
All authorisations made by the company will be terminated when the company is in liquidation. The authorised staff/third party will not be able to access the company’s tax portal.
The appointed Liquidator (other than an individual) or Official Assignee has to complete the Request for Access to myTax Portal of Liquidated / Bankrupt Client Form (51KB) and submit it to IRAS.
After the authorisation has been approved by IRAS, the authorised Liquidator (other than an individual) or Official Assignee will be able to log in to EASY to authorise their staff to act for the company in liquidation.