The Inland Revenue Authority of Singapore has introduced a new section 94A(3) of the Singapore Income Tax Act to impose heavier penalties for failure to file tax returns for 2 years or more. It states as follows:
“Any person who fails or neglects without reasonable excuse to comply with section 62 or 71 in respect of any year of assessment for 2 years or more shall be guilty of an offence and shall be liable on conviction to:
(a) a penalty equal to double the amount of tax which the Comptroller assesses him to be liable for that year of assessment after determining, to the best of the Comptroller's judgment, the amount of his chargeable income; and
(b) a fine not exceeding $1,000
and in default of payment to imprisonment for a term not exceeding 6 months.”
The new section takes effect from the Year of Assessment 2009. Taxpayers who have not filed their income tax returns for Years of Assessment 2007 or prior years by Year of Assessment 2009 will be caught, and be potentially liable for penalties of two times the estimated tax as assessed by the Comptroller for the respective outstanding years of assessment.
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