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.
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.
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|
|If You Paper-Filed Your Tax Return:|
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.
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.
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.
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:
Your personal circumstances will be considered if the IRAS feels there was no intent of tax evasion while determining your penalty.
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.