Reduced Penalties for Voluntary Disclosure of Errors
- No penalty will be imposed if disclosure is made within one year from statutory filing deadline*. This is known as the Grace Period.
- After the Grace Period, there will be:
- 5% of the Income Tax undercharged or the excess PIC cash payout/bonus amount for each year of delay; or
- 5% of the GST undercharged or outstanding Withholding Tax.
* Subject to qualifying conditions
Penalties for Voluntary Disclosure of Tax Evasion
Voluntary disclosure on tax evasion or claiming excessive PIC cash payout/bonus intentionally may be compounded by IRAS at 200% of the tax undercharged or excess cash payout/bonus amount and in lieu of prosecution. IRAS website and e-Tax Guide has a detailed write-up on this Voluntary Disclosure Program. At A Tax Advisor Pte Ltd, we conduct “Health Checks” for our clients to uncover any tax errors and disclose them to the IRAS voluntarily. If we are filing your taxes, we would make the necessary adjustments from your accounts to comply with the tax rules.