The majority of clubs pay their duties on time. The payment due date is by the 14th of the month following the end of the month you had conducted the lottery (except for scheduled lottery). Scheduled lottery payment due date is within 14 days from the date of the lottery. You may face penalties and enforcement actions for late or non-payment of private lotteries duty.

Consequences for late payment or non-payment of duty

Duties are payable notwithstanding you may have lodged an objection to the assessment.

IRAS may take the following actions if you fail to pay by the due date: 

  1. Impose late payment penalties
  2. Appoint agents like the club’s bank, tenant or lawyer to recover the overdue duty
  3. Take legal action

The above list is not exhaustive.

Late Payment Penalty

A 5% late payment penalty will be imposed on the unpaid duty if full payment is not received by the payment due date.

Example 1: Penalty imposed for late payment

Club X conducted a lottery on 1 Jun 2020. The due date for the duty payable of $10,000 is 14 Jul 2020 (14th of the month following the end of the month the club had conducted the lottery). As the club did not pay the duty by 14 Jul 2020, a 5% late payment penalty of $500 (i.e. 5% x $10,000) was imposed.

Lottery Date Duty Due Date Duty Payable 5% Late Payment Penalty Imposed
1 Jun 2020 1 Jul 2020 $10,000 $500

 

If you have filed an objection and are awaiting the outcome, you still must pay the duty assessed as shown in the NOA. Excess payment will be refunded if the assessment is revised.

Example 2: Penalties and refunds when an objection is filed

Club Y received an estimated NOA, with a duty payable of $10,000, dated 15 Jul 2020.

Club Y filed an objection and did not pay the duty. As no payment was received by the due date of 14 Jul 2020, a 5% late payment penalty of $500 was imposed.

Club Y paid the duty and penalty on 20 Jul 2020. On 20 Aug 2020, the Assessment was amended to $1,300 and the late payment penalty was revised to $65 (5% late payment penalty on $1,300) accordingly. A refund of $9,135 was made to Club Y.

Date of NOADuty Due DateDuty Amount5% Late Payment Penalty Imposed
15 Jul 202014 Jul 2020$10,000$500
20 Aug 202014 Jul 2020($8,700)($435)
Revised Duty and 5% Penalty
$1,300$65
If the duty remains unpaid 7 days after the imposition of the 5% late payment penalty, an additional penalty of 5% may be imposed.

Example 3: Penalty imposed for continued late payment

Club Z did not pay the duty payable of $10,000 by the due date and received a late payment penalty notice dated 15 Jul 2020 informing the club of the overdue duty and the 5% late payment penalty.

If the duty remained unpaid 7 days after the imposition of the 5% late payment penalty, an additional penalty of 5% may be imposed.

Club Z eventually paid the duty and penalties on 23 Jul 2020.

The total penalty imposed was $1,000 (i.e. 5% penalty x $10,000 plus 5% additional penalty x $10,000).

Late Payment Penalty Notice DatePayment Date5% Penalty ImposedAdditional 5% Penalty Imposed
15 Jul 202023 Jul 2020

$500

($10,000 x 5%)

$200

($10,000 x 5%)

Appealing for waiver of late payment penalty

Appeals must be made via email to [email protected]

Appeals will only be considered if:

  1. You have paid the overdue duty in full, by the due date as stated in the late payment penalty notice; and
  2. No waiver has been granted in the past 6 months or you have paid on time in the past 6 months

Appointment of agents

If the duty remains unpaid, IRAS may appoint agents like the club’s bank, tenant, lawyer or other 3rd parties with money due to the club to recover the duties owing.

When the club’s bank is appointed as the agent, you will experience inconvenience in using the bank accounts (e.g. being unable to access your bank accounts) until you have fully paid the duty.

Requests made for release of the banks from the agent appointment after 12pm on weekdays will only be processed on the next working day while requests cannot be processed on Saturdays, Sundays and Public Holidays.

Agents will be released from the appointment only after the duty and penalties have been paid in full.