IRAS recovers $79M in penalties

IRAS is getting savvy. Two thirds of cases reviewed included data analytic tools to catch errors in addition to random sampling, qualitative analysis and tip offs. Understating or omitting income is one of the most common tax filing mistakes. Poor record keeping is partly to blame at family run business.

Common Errors

  • Lack of proper record-keeping to substantiate deductions and lack of clarity between business expenses and personal expenses
  • questionable remuneration to family members that do not match services rendered
  • incorrect capital allowance claims and
  • non arms-length transactions between related parties