Consequences for late or non-filing of tax returns
Failure to file your Form P1 together with original Audited/Certified Statement of Accounts 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
- Summon the club/association or persons responsible for running of the club/association to Court
Estimated Notice of Assessment
IRAS may issue an estimated Notice of Assessment based on your club/association’s past years’ income or any information that IRAS may have. IRAS may make assumptions in estimating any increase in income.
If you 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 P1 and Original Audited/Certified Statement of Accounts. 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 you to avoid prosecution by paying a composition amount.
A composition amount not exceeding $5,000 may be offered depending on your clubs/association’s past compliance records. A notice will be sent to inform your club/association 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.
Legal actions may still be taken against your club/association 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
Appeals can be made via email to [email protected]. Appeals will only be considered if:
- You have submitted the outstanding tax returns and/or documents by the due date stated in the offer of composition; and
- You have filed your tax return on time for the past 2 years
A summons may be issued to the club/association to attend Court on a specified date if IRAS does not receive:
- The required tax return 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 club/association’s representative, 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 the club/association (i.e. a warrant of arrest may be issued against the club’s president).
In Court, if convicted of the offence, the club/association may face a fine not exceeding $5,000.
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, you may be issued with a summons to attend Court. On conviction in Court, you 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
For previous years of assessment, you may email us at [email protected] to request for a duplicate copy of Form P1. The Form P1 will be sent via post. IRAS does not acknowledge receipt of hardcopy tax returns submitted.
Request for Waiver Application Form
If the Club/Association has been dormant for at least 3 years and will not recommence activities within the next 2 years, does not receive any investment income and has no intention to de-register with the Registry of Societies, you may apply for waiver to submit Form P1 by completing the Application Form.