MORE than 4,700 companies were prosecuted in 2023 for late or non-filing of tax returns, amounting to total penalties that exceeded S$4.9 million, said the Inland Revenue Authority of Singapore (Iras) in a statement on Thursday (Sep 26).
Amid the Corporate Income Tax (CIT) filing season, the tax regulator reminds all companies, including those with no business activities and those in a loss position, to file their CIT returns by Nov 30.
Companies that file their CIT returns from software will receive an automatic 15-day extension of the filing due date to Dec 15.
About 262,000 companies are expected to file their CIT returns this year.
Those that fail to do so by the due date can face fines of up to S$5,000, said Iras.
These companies are required to pay the fine and file the overdue tax return, failing which a notice to attend court will be issued.
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Depending on factors such as past compliance records, Iras may compound the offence instead of taking prosecution actions.
“Errant companies that fail to file their returns for two years or more may be ordered by the courts to pay a penalty twice the amount of tax assessed, in addition to the fine,” it said.
It noted that each year, about one in 10 companies fail to comply with their CIT filing obligations despite repeated reminders.
For such companies, their directors may also have to bear the responsibility as Iras may issue notices to them, requesting the company’s financial information.
“Directors who fail to furnish the information by the stipulated date will be subject to heavier penalties of up to S$10,000 or court attendance.”
In 2023, 1,690 court summons were issued to company directors who failed to comply with notices