The clock is ticking and before you know it your business needs to file the taxes. You can choose to file the taxes via paper or e-file. Take note that even businesses that have not functioned throughout the year or are operating at a loss are not exempted from filing a tax return in Singapore.
Businesses that file Form C–S need not present financial statements or any computations of tax. Of course, this is so until the Inland Revenue Authority (IRA) of Singapore says otherwise.
June will come about with some changes according to the IRA. You will start using Corp Pass to login into the e-services. IRA will start distributing the transition information packages in a reasonable time.
For fear of being penalized, businesses work keenly on their filings to ensure there are no mistakes. But often, mistakes appear.
Noncompliance is met with serious penalties which help the IRA recover millions of dollars. There are programs carried in Singapore to ensure noncompliance is minimized.
In the recent past, IRS has focused on the construction companies where it discovered that there are incorrect methods used to file taxes which resulted in delays of profit reports into the following year.
Such situations require filing education be carried out to individuals in such an industry for better future filling. Below are some mistakes to avoid:
Do Not Claim Renovation and Refurbishment You Do Not QualifyFor
Businesses are urged to do claiming only in occasions when they have actually incurred the renovation and refurbishment costs. This spending should not be more than 300,000 dollars in three years.
Do Not Claim Deductions you Spent on Your Private Expenses
Private expenditure is a non-deductible when it comes to tax filing. Also, provisions for expenditure are not tax-deductible until your business has a liability for the expenses.
Do Not Place Incorrect claims Under the Productivity and Innovation Credit (PIC) Plan
You are only allowed to claim productivity and Innovation Credit cash or choose a deduction of similar qualifying expenditure. You cannot do duplicate claims.
You should make sure that your appliances are among the automation equipment names.
Ensure You Have all Records
When an assessment is made you need to keep the records for five years safely to submit them when needed.
Wrong Methodology for Income Tax Recognition
“Percentage of completion” is the methodology to be used by construction businesses. Using wrong methods is unacceptable.
When you fail to file or give incorrect reports of your business income, you get hefty penalties and even in worse situations a jail term.
If you fail to file returns for a year or two, you will face a penalty of double the assessed returns and an additional fine of about 1,000 dollars. If you fail to pay you will be imprisoned for six months.
When a company gives wrong returns, you will face a 200% penalty of the undercharged amount. The judge will then decide on a fine of 5,000 dollars or three years prison time.
Companies that have made errors in their filings are recommended to come forward by the tax return in Singapore authorities.