Reporting Tax Frauds in Singapore

Report Tax Frauds

When you as an honest tax-paying citizen do your bit by paying your tax bill regularly, it can feel unfair when others don’t. When someone intentionally provides IRAS with wrong information to reduce the tax they pay, they are trying to evade tax.

If you notice someone trying to evade taxes, there are ways you can report it to the authorities. You can even ask for a reward based on the information you provide. To report tax evasion, you can fill an online form, email IRAS, or even visit the IRAS office in person.

What Will You Get for Reporting Tax Evasion?

Based on the information you provide IRAS, they may choose to gather more information. If they have sufficient details to warrant an investigation they will take action as they see fit. However, they will not be able to provide you with details of their investigation as anonymity of the case is paramount.

If you provide information that leads to tax evasion being thwarted, you may be eligible for 15% of the amount of tax recovered. For this you will need to:

  • Provide IRAS will details identifying yourself along with the requisite documentation. You also need to mention specifically that you intend to collect a reward.
  • Include information that is both specific and relevant, which names the persons or parties involved and one of the following from the list below:
    • When the tax evasion took place.
    • Approximate amount.
    • How the tax evasion occurred.
    • And any proof of tax evasion supported by appropriate documentation.

Rewards are decided solely by the Commissioner of Inland Revenue. Upon completion of the investigation and once taxes are collected, IRAS will let you know if you are eligible for a reward. If you have reported a case, you won’t be informed of the status of a reward or any aspect of the case.

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What Falls Under Tax Evasion or Fraud?

When someone intentionally tries to dupe the government by providing inaccurate information with the aim to reduce the taxes they pay, it is tax evasion. Check out some of the instances that could point to tax evasion.

For Income Tax:
  • Not declaring all your income.
  • Trying to gain relief for dependents who are fictitious.
  • Attempting to claim deductions that are not applicable to you.
For GST:
  • Trying to omit output tax on local supplies that are taxable.
  • Trying to claim input tax for fictitious purchases.
  • Attempting to claim a tourist refund when it does not apply.

You would notice certain tell-tale signs when a person tries to evade tax. But here are a few pointers to keep in mind that may be helpful for you.

Signs a firm or a person could be attempting to evade income tax: When they don’t want to issue receipts, they keep a duplicate set of accounts or provide fake invoices supporting fictitious expenses.

Signs a business or person could be attempting to avoid paying GST: They don’t issue receipts or tax invoices, they keep 2 sets of their accounts or they provide false invoices with fake expenses. They could also provide fake export documents or give their suppliers and customers incorrect information.

How to Contact IRAS About a Tax Fraud

If you know of a person or a firm that is attempting to commit fraud or evade taxes, you could help the IRAS by giving them information by:

  • Sending them an email at [email protected]
  • Or you could fill an online form at https://www.iras.gov.sg/irashome/web/pages/feedback/formTaxEvasion.aspx.
  • You could also visit IRAS personally to report your findings at the following address:
  • Investigation and Forensics Division (IFD) Inland Revenue Authority of Singapore
    55 Newton Road,
    14th Storey,
    Revenue House,
    Singapore 307987

What Information to Provide IRAS When You Contact Them

Once IRAS goes through the information you provide them and they find suspicious activity, they will start an investigation. You can help them complete their investigation quicker if your information is as detailed as possible. Details you can provide include:

  • Tax evader’s name.
  • Their NRIC number, ROC number, or UEN.
  • The address and name of their director.
  • Their business type.
  • The type of tax evasion and the amount involved.
  • Details of how the tax evasion occurred.
  • When the said tax evasion took place.
  • And documented details proving the activity took place.

You don’t have to provide your personal details. However, if you want to claim a reward you have to visit the IRAS office in person and furnish these details. You needn’t worry about your privacy as all the information, including documentation, is kept confidential.

Still concerned about getting into trouble while you provide information? If you simply provide information about a person or a firm trying to evade tax, you will not be under the IRAS’s radar. However, if they do discover you are also involved in tax evasion or fraud, they will initiate prosecution charges.

If you voluntarily choose to disclose past transgressions, that included intent to commit tax evasion, you could get a reduced penalty rate of 200%. You can learn more about the Voluntary Disclosure Programme (VDP) here. https://www.iras.gov.sg/IRASHome/Contact-Us/Report-Tax-Evasion/


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