Amending Tax Filing Errors

Do you have undeclared income that you want to file? Did you receive a payment from a freelance job that you forgot about? Read on to find ways you can rectify your situation and get your finances back on track.

Amend Your Tax Filing Errors

3 Ways to Correct Your Filing Mistakes

Take a look at the ways you can resolve your incorrect filing and make the changes before it is too late. You can follow this step-by-step guide to fix your financial woes.

1. By Making Changes Within 14 Days of Filing

You can re-file on the myTax Portal. You can do this only once after your original filing. You will also have to do this 14 days from your previous submission or 18 April 2018, depending on whichever is earlier. You can also email the required information to IRAS.

If You E-Filed Your Tax Return
  1. Sign in to myTax Portal.
  2. Choose ‘File Form B/B1’.
  3. Follow the directions provided on the page.
Ensure that you have included all relevant details pertaining to your income and other expenses, relief claims and donations (whichever are applicable)  Upon your online submission, this submission will override your last one.

If You Paper-Filed Your Tax Return:
  • Income from Employment:
    • You need to give details of your income, whether it is your salary, allowance, bonus, etc.
    • Provide specific amounts for every type of income.
    • You also need to give copies of all documents that are relevant.
    • If you have received a large or lump sum payment from a former employer, you will have to provide:
    • The circumstances and nature that led to this payment.
    • A copy of any contract or agreement that led to the payment.
    • The amount you received.
    • How your previous employer arrived at that amount.
    • Copies of any correspondence that relates to the amount.
  • Income from business, trade, vocation, or profession income:
    • Your business name (if applicable).
    • Nature of your business.
    • The registration number of your business (if applicable).
    • The accounting period for your business starting from date/month/year to date/month/year.
    • A statement comprising 4 lines in the format given below:
      1. Business revenue.
      2. Business profit/loss.
      3. The allowable business expense.
      4. The adjusted Profit/Loss [(iv) = (ii) less (iii)]
  • Income from Other Sources:
    • You need to provide details of the nature of your income. Whether you have earned it from a rental property or if it is a royalty payment, etc.
    • You also need to give the specific amount you earned for each source.
  • Expenses You Incur
    • You have to provide IRAS with the types of expenses you’ve incurred.
    • The reason you have incurred those expenses.
    • How you arrived at those amounts.
    • The dates you incurred said expenses.
  • Reliefs and Rebates You May Be Entitled to
As a taxpayer, you may be entitled to certain reliefs and rebates depending on your situation. Whether you improve your work skills, save for retirement, or provide care to eligible dependents, you could take advantage of these reliefs and/or rebates.

2. By Voluntarily Reporting Omitted Income for Previous Years

If you have not reported income for previous years, you need to provide certain details in your tax return. For instance, you have to provide the type or nature of your income. You need to give specific information on the undeclared income, whether it was in the form of salary, commission, allowance, bonus, etc.

You’ll have to provide the period when the income was earned (from and to periods). You also have to provide the exact date you received the income and the specific amount you received.

3. Through the Voluntary Disclosure Programme (VDP)

Taxpayers generally aim to comply with tax norms, but sometimes it is possible to make a mistake while filing your returns. If you have made such an error while filing your returns, the Voluntary Disclosure Programme (VDP) can help sort this out for you. You will have to approach IRAS willingly and within the requisite timescales to set these errors right. Upon meeting the set conditions, you could have your penalties reduced for willingly disclosing your errors.

What You Need to do to Qualify

You need to submit the VDP before IRAS sends you a query or informs you of an audit or investigation on your income or tax details. You also will need to correct these errors by working with IRAS. You have to commit to the pay IRAS any pending penalties or tax amounts, or extra payouts you claimed.

What Happens If You Don’t Declare Your Income Accurately?

If the IRAS feels that the errors in tax were done with intent to evade taxes you will face a penalty of the tax undercharged up to 400%. You could also face a prison sentence up to 7 years and/or pay a fine up to S$50,000. The penalty/punishment will also apply to those who aided the taxpayer to willfully evade tax.

If the IRAS determines that you have made an error or discrepancy with no intention of tax evasion, you may have to face the following under the Income Tax Act:

  • Pay penalties for the tax undercharged up to 200%.
  • Fine of up to S$5,000 and/or
  • Face imprisonment for up to 5 years.

Your personal circumstances will be considered if the IRAS feels there was no intent of tax evasion while determining your penalty.

Circumstances IRAS Will Consider to Determine Penalties:

  • Your compliance history.
  • Your cooperation during the time of an audit.
  • Whether you have been negligent while filing your taxes.
  • Your dedication to comply with proper filing of taxes for the future.

Additional Note

To avoid any mishaps in future you can take a few precautionary steps. You could document all the income you receive at the time you get paid. This way you’ll reduce the likelihood of forgetting where you received income from. You also will have the amounts you received handy when you need to file your taxes. Pay attention to the forms you fill online and go over your details twice to ensure there are no mistakes. A little attention can go a long way in preventing you from getting into a world of trouble.

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