FAQs  Penalties for filing late or not filing

How the company can settle the Offer of Composition

If the company has received an Offer of Composition

The company needs to:

• File the Form C, audited/unaudited accounts and tax computation immediately to avoid higher composition fee; and
• Pay the composition fee by the due date stated in the letter
• If the company has not filed the Form C, audited/unaudited accounts and tax computation by 30 Nov even though it is supposed to file

The company will have to:

File the Form C, audited/unaudited accounts and tax computation immediately. Once the company receives an Offer of Composition, it will have to pay the composition fee imposed.

If the company does not pay the composition fee and/or file the Form C, Audited/Unaudited Accounts and Tax Computation
Summons will be issued to the company to attend Court. The fine imposed by the Court is usually higher than the amount of composition fee set by IRAS.

Summons
A summons is an official order to appear in Court. It is a written notification that prosecution action has started.

When a Summons may be issued

A summons may be issued when:

The company's Form C, audited/unaudited accounts and tax computation are not filed by 30 Nov, the filing due date.

If the company has received a Summons

The company director / representative is required to attend Court on the date fixed by the Court with a Letter of Authority.

How the company can settle the Summons ?

The company will have to file the Form C, audited/unaudited accounts and tax computation and pay the composition fee at least 4 working days before the date fixed by the Court. Thereafter, the company director / representative will not be required to attend Court on the assigned date as the summons will be withdrawn.

If the company does not settle the Summons before the Court date ?

The company director / representative has to attend Court on the assigned date. Once he/she pleads guilty on the company's behalf, the company will be fined up to a maximum of $1,000 for each summons issued against the company. The company is still required to file the Form C, audited/unaudited accounts and tax computation. Otherwise, the company directors may face prosecution action as long as the Form C, audited/unaudited accounts and tax computation are not filed.

If the Court date has been postponed ?

The company can still file the Form C, audited/unaudited accounts and tax computation and pay the composition fee before the new Court date. Once the company has filed the Form C, audited/unaudited accounts and tax computation and paid the composition fee, the company director / representative will not be required to attend Court on the assigned date as the summons will be withdrawn.

Other Legal Actions
All companies are required to file their Form C, audited/unaudited accounts and tax computation by 30 Nov, the filing due date. If the company does not file the Form C, audited/unaudited accounts and tax computation for any Year of Assessment (YA) for 2 years or more, it is liable on conviction under section 94A(3) to -

1. A penalty equal to double the amount of tax that IRAS may assess for that YA; and
2. a fine not exceeding $1,000.

E.g.: Companies are to file their Form C, audited/unaudited accounts and tax computation for YA 2009 by 30 Nov 2009. If the company has not filed the Form C, audited/unaudited accounts and tax computation for YA 2009 by 1 Dec 2011, the company may be prosecuted under section 94A(3).

How to file the Form C, audited/unaudited accounts and tax computation ?

e-Filing - Year of Assessment 2008 and thereafter

Filing previous years' Form C (Prior to Year of Assessment 2008)

You may request a duplicate copy of the Form C by either:

Downloading a soft copy of the Form C* and sending the completed Form C by post; or
Calling IRAS Enforcement Helpline on +65 6356 7012

* If you choose to download the Form C template, please remember to fill in the Document Identification Number (DIN) on the DIN sheet of the template. To find out how to retrieve your DIN, please refer to the user guide. Paying the Composition Fee

Please pay the composition fee via one of the following modes (with the payment voucher enclosed with the Offer of Composition or Summons):

1. By cash / NETS at any Singapore Post outlet
2. By Internet Banking
3. By AXS Machines
4. By S.A.M (Self Service Automated Machine)
5. By Singapore cheque, crossed and made payable to the "Comptroller of Income Tax", with the company's name, Tax Reference No. and Summons No. (for summons cases) written on the reverse side of the cheque. The cheque is to be attached to the payment voucher.

Important Notes:

1. If you would like to check if your payment has been credited, please log in to myTax Portal and click on "View Account Summary" after 3 working days.
2. If the composition fee is paid without filing the Form C, audited/unaudited accounts and tax computation, prosecution action may be taken against the directors.

Tips to Avoid Penalties ?

Quoting of Document Identification Number (DIN)

If you choose to download the Form C template, please fill in the correct Document Identification Number (DIN) on the DIN sheet of the template. To find out how to retrieve your DIN, please refer to the user guide.

Submission of Accounts

Companies are required to file full set of financial accounts to IRAS. Only companies who have filed full set of financial accounts with ACRA in XBRL format ["Option A"] are not required to file the same with IRAS. (For more details on the XBRL formats, please read ACRA's website on "Filing Financial Statements with ACRA")

Complete Set of Accounts?

A complete set of unaudited accounts consist of:
- Directors' Report
- Statement by Directors
- Profit & Loss Statement
- Balance Sheet
- Detailed Profit & Loss Statement
- Notes to the Accounts