What happens if I am late for my Corporate Taxes?

In this section, you will learn about the effects of late filing of taxes and what you should do.

You are late for your Form C/C-S tax submission. What will happen?
We have classified the late filing procedures into 4 main phases for you. In the unfortunate event that your tax filing is late, it is important for you to understand the actions and enforcements that IRAS may take against you in each of the late filing phases.

Phase 1: You MAY receive an Estimated Notice of Assessment (NOA) from IRAS
This estimate is based on IRAS’s own estimate of your taxes because you did not submit any returns.

What do you need to do? [Two-Step Approach]

1. Please pay the estimated tax within one month from the date of the Notice of Assessment (NOA). You must pay the estimated tax even if you disagree with the tax amount or you intend to object to the assessment. Otherwise, your payment will be considered late and there will be penalties for late payment. For NOAs dated 1 Jan 2014 and after, you have up to 2 months from the date of the NOA to file an objection.

2. File your tax returns (with a covering objection letter if any) without further delay so that the estimated tax can be revised. You must attach the objection letter to your set of returns even if you have previously submitted it, to expedite the finalization of the assessment.

If you have done the 2 steps described, your tax obligations will be fulfilled for the tax year. If you have not done so, or you are not issued an Estimated NOA, Phase 2 will kick in.

Phase 2: You WILL receive a Notice titled Outstanding Tax Return and/or Document(s) and Composition Fee
What do you need to do? [Two-Step Approach]

1. File the outstanding tax return and/or documents as stated in the Notice
2. Pay the Composition Fee before the payment due date stated in the Notice. You may appeal for a waiver or reduction of the composition fee if you have valid reasons, but you must do so before the payment due date.

If you have not done so, you will have ONE More Chance with Phase 3.

Phase 3: You will receive a letter titled Notice Pursuant to Section 65B(3) of the Income Tax Act
What do you need to do? [One-Step Approach]
1. File the outstanding documents within 35 days from the date of the Notice to avoid being summoned to Court. Additionally, you will still need to clear up those previously incurred composition fees.

If you still choose to ignore the requests of IRAS for the required documents and/or the composition fee by the due date, a summons will be issued to the company and/or the director to attend Court on a specified date. This is the last Phase… and LAST Chance for you.

Phase 4: You will receive a Summon Notice for a director to attend court on behalf of the Company on a specified court date.
What do you need to do? [Two Options]
Option 1 – Submit requested documents and pay Composition fine plus Summon Fee at least ONE Week before the Court Date as stated in the Summon Notice.

Option 2 – You are unable to file the documents and pay the fees on time, therefore, the company will have to appoint a representative to attend court on the court date. Please make sure you attend court with an authorisation letter.

Here is what may happen when you attend court:
1. You will be fined up to $1,000
2. You will have to submit the tax documents and fees based on a deadline given to you.

Further prosecutions will be taken against you and the company if you are unable to comply with the filing even at this stage.

For companies with outstanding tax returns for two years or more, on top of the fine of up to $1,000, there will be an additional penalty levied that is twice the amount of taxes you need to pay for the given year in default… on top of the actual taxes you need to pay.