Consequences for late or non-filing of tax returns
Failure to file Form T 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 Legal Personal Representative or Trustee responsible to Court
Estimated Notice of Assessment
IRAS may issue an estimated Notice of Assessment based on the trust’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 T. Otherwise, the estimated assessment will not be revised.
If Form T is 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 for each offence may be offered depending on the trust’s past compliance records. A notice will be sent to inform you of the composition amount. You must pay the composition amount and file the overdue
tax return by the due date to avoid prosecution.
Paying the composition amount
Bring along the payment slip when paying the composition amount at any Singapore Post outlet or pay by Singapore cheque, crossed and made payable to the "Comptroller of Income Tax", with your full name and tax reference number written on the reverse side of the cheque. Post the cheque and the payment slip to IRAS.
The payment will be processed after 3 working days.
Legal actions may still be taken against you 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:
1. You have submitted the outstanding tax returns by the due date stated in the offer of composition; and
2. You have filed your tax return on time for the past 2 years
A summons may be issued to the Legal Personal Representative or Trustee 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
- Pay the composition amount
Postponement of Court hearing
If you need more time to file and/or pay the composition amount, the Legal Personal Representative or Trustee, must attend Court on the Court date to appeal for postponement.
Failure to attend Court will result in further legal actions taken against the Legal Personal Representative or Trustee (i.e. a warrant of arrest may be issued against the Legal Personal Representative or Trustee).
In Court, if convicted of the offence, the Legal Personal Representative or Trustee may face a fine not exceeding $5,000 for each offence.
You must still file the outstanding tax returns. 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, for each offence, 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 T. The Form T will be sent via post. IRAS does not acknowledge receipt of hardcopy tax returns submitted.