Tax assessment process
IRAS will review the Form P1 together with the statement of accounts to determine the amount of tax payable by the body of persons. IRAS may request for further information from the body of persons, and make adjustments to the tax computations based on
the information received. Generally, you can expect to receive the Notice of Assessment (NOA) by 31 December of the same year.
Filing objections to income tax bill
If you do not agree with the tax assessment raised by IRAS, you may file an objection to have the tax assessment revised.
How and when to file objections
You should file your objection within 2 months from the date on your NOA, stating clearly the reasons for objection.
You may file your objection by writing to [email protected], or by post to:
The Comptroller of Income Tax
Compliance and Small Volume Taxes Branch
55 Newton Road, Revenue House
IRAS will review your objection and request for further information from you if necessary. You will be informed of the outcome of the review within 6 months from the date of the last correspondence providing complete information to IRAS. For complex cases where more time is required to review the tax issue under objection, IRAS will inform you of the estimated time required.
However, even if you are filing an objection, you must still pay the taxes raised within 1 month from the date of the NOA. If your objection is successful, the excess amount paid will be refunded.
Purpose of audit
IRAS conducts regular audits to ensure the accuracy of the tax submissions. Such audits involve reviewing the accuracy of the information in the tax returns and statement of accounts that were submitted. Being selected for an audit does not necessarily mean that you have made a mistake.
The objectives of a tax audit are:
- Ensure that the tax returns are in compliance with the tax laws;
- Educate taxpayers on tax obligations and assist taxpayers to comply; and
- Identify tax laws, policies and processes that we can simplify or clarify
What to expect during an audit
An audit involves verifying that the transactions by the body of person has been correctly classified and accounted for, and to ensure that the information is correctly reported in the income tax returns.
IRAS will issue a letter to request for information such as:
- Information on your business and operations;
- Listings and records of income and expenses;
- Supporting documents (e.g. bank statements, invoices or receipts); and
- Register of members
In the course of the audit, IRAS may also request for confirmations from suppliers, members and/or banks to verify some of the transactions.
Responsibilities of taxpayers
During the audit, IRAS will require your cooperation to provide timely and accurate replies to our requests for information and be truthful and honest in your dealings with IRAS.