Consequences for late or non-filing of tax returns
Failure to file your Form C-S/ C together with financial statements and tax computation by the due date is an offence.
IRAS may take the following enforcement actions if you fail to file by the due date:
- Issue an estimated Notice of Assessment. You must pay the estimated tax within 1 month
- Offer to compound the offence
- Issue a Section 65B(3) notice to your company director to submit the required information in the Form C-S/ C to IRAS
- Summon the company or persons responsible for running of the company (including the directors) to Court
Estimated Notice of Assessment
IRAS may issue an estimated Notice of Assessment based on your company’s past years’ income or any information that IRAS may have. IRAS may make assumptions in estimating any increase in income.
If your company receive an estimated Notice of Assessment, you must:
- Pay the estimated tax within 1 month from the date of the Notice of Assessment
You must pay the estimated tax even if you intend to object to the assessment or are awaiting the outcome of the objection. There will be penalties for late payment.
- File an objection if you disagree with the estimated tax assessment
You must file an objection to the assessment within 2 months from the date of the Notice of Assessment.
When filing the objection, you must submit the Form C-S/ C, financial statements and tax computation. Otherwise, the estimated assessment will not be revised.
If all the documents are submitted, your objection to the estimated tax assessment will be reviewed and excess tax paid will be refunded.
Offer of composition
Instead of taking prosecution actions, IRAS may allow your company to avoid prosecution by paying a composition amount.
A composition amount not exceeding $5,000 may be offered depending on your company’s past compliance records. A notice will be sent to inform your company of the composition amount. You must pay the composition amount and file the overdue tax return and documents by the due date to avoid prosecution.
Paying the composition amount
Quote the payment slip number when paying the composition amount using the preferred payment modes. GIRO payment is not allowed.
The payment will be processed after 3 working days. To check if payment has been credited, log in to mytax.iras.gov.sg and select "View Account Summary".
Legal actions may still be taken against your company if you do not file the outstanding tax return after paying the composition amount. The payment made will be used to settle any unpaid tax.
Appealing for waiver of composition amount
- You have submitted the outstanding tax returns and/or documents before the due date stated in the offer of composition; and
- You have filed your tax return on time for the past 2 years.
Notice to director to request for information under Section 65B(3)
IRAS may issue a Notice to the director of your company under Section 65B(3) of the Income Tax Act. Your company director is required to provide the information requested by the due date stated in the notice, to avoid being summoned to Court.
A summons may be issued to your company and/or your company directors to attend Court on a specified date if IRAS does not receive:
- The required tax return and/or documents by the due date
- Payment of the composition amount by the due date
If you do not wish to attend Court, you must do all of the following actions at least 1 week before the Court date:
- File the outstanding tax return and/or documents
- Pay the composition amount
Postponement of Court hearing
If you need more time to file and/or pay the composition amount, your company's representative, even if he is the director, must attend Court on the Court date with a Letter of Authorisation to appeal for postponement.
Failure to attend Court will result in further legal actions taken against your company (i.e. a warrant of arrest may be issued against the company director).
In Court, if convicted of the offence, your company may face a fine not exceeding $5,000.
If your company director is convicted for failure to comply to Section 65B(3), he could face a fine of up to $10,000 or imprisonment of up to 12 months or both.
You must still file the outstanding tax returns and/or documents. Otherwise, further legal actions may be taken.
Failure to file your tax returns for 2 or more years
If you fail to file your tax returns for 2 years or more, your company may be issued with a summons to attend Court. On conviction in Court, your company may be ordered to pay:
- A penalty that is twice the amount of tax assessed; and
- A fine not exceeding $5,000.
Filing outstanding tax returns
In line with compulsory e-Filing, paper submissions of Form C (Upload) will not be accepted with effect from YA 2020. In addition, the downloadable Form C-S will not be available on the IRAS website.
Can I request for an extension to file my company’s overdue tax return?
For current Year of Assessment
However, if a summons to attend Court has been issued, filing extensions are not allowed. If you require an extension to file, your company representative/the director must attend Court on the Court date to appeal for an extension.
Failure to attend Court may result in further legal actions.
(Note: Extension of time to file for current Year of Assessment will only be available after 30 November)
For previous Year(s) of Assessment
No filing extensions will be granted as the returns are long overdue