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Singapore –  Over 900 Employers Prosecuted for YA 2023 with Penalties Exceeding $1 Million

Over 900 Employers Prosecuted for YA 2023 with Penalties Exceeding $1 Million

Employers Must Submit Employees’ Income Data by 1 Mar to Avoid Penalties and Prosecution 

Employers have a statutory obligation to submit their employees’ 2023 employment income information to the Inland Revenue Authority of Singapore (IRAS) by 1 March 2024, ahead of the tax filing season. This applies to employers who are already on the Auto-Inclusion Scheme (AIS), or have 5 employees or more in 2023. Non-compliance is an offence under the Income Tax Act.

 

900 Employers Prosecuted, $1.1 Million in Penalties Imposed

Employers who do not file by 1 March 2024 can be fined up to $5,000, which was increased last year from $1,000 previously. Key personnel of non-compliant businesses such as company directors or partners can also be fined up to $10,000, and/or imprisonment for a term of up to 12 months.

In 2023, 1 in 10 employers on the AIS failed to file on time (i.e. late or non-submissions) despite repeated reminders. IRAS has prosecuted over 900 non-compliant employers last year, resulting in penalties exceeding $1 million.

 

Common AIS Filing Errors and Voluntary Disclosure Programme

Employers must ensure the submission of complete and accurate employment income information for their employees to IRAS, as this data will be used to calculate their employees’ tax bills.

Submitting inaccurate employee income information is an offence and may result in a penalty of up to two times the amount of tax undercharged. Employers are encouraged to voluntarily disclose any past errors or omissions in their employees’ information immediately, for reduced penalties under IRAS’ Voluntary Disclosure Programme.