Tax Investigation FAQ


1. Why am I under tax investigation?

Tax investigation happens when IRAS has preliminary information to believe that a taxpayer is evading tax on individual Income Tax, Corporate Company Income Tax, GST and other tax types administered by IRAS.


2. What should I do when I’m under tax investigation?

We understand it is stressful when you are picked for a tax investigation. However, you should give the investigation officer your full cooperation and do not obstruct them from performing their duties. You may appoint a tax professional who is experienced in handling tax investigation as tax investigation is a complicated process.


3. Can I appeal against my tax investigation?

Unfortunately, you cannot appeal against an investigation being opened.


4. What information I need to prepare during the tax investigation

You are required to provide any information and documents that IRAS requests.


5. How long does a tax investigation take?

It depends on the scope of the tax investigation, complexity of the underlying irregularities, and the level and sincerity of the taxpayer’s cooperation he renders to the Authority in the process of the investigation. Normally, an investigation on average may take about 15 to 24 months to complete.


6. What is the penalty for tax evasion?

 
Penalty (% of tax undercharged) Up to 300% for wilful intent
Up to 400% for serious fraudulent
Fine Up to S$50,000
Jail Term Up to 5 years

7. How NLA DFK help with the investigation?

We are able to help as follows:

 

8. How to avoid being investigate by IRAS?

Tax Investigation happened for a reason. Sometimes it is due to information that the taxpayer is unaware of or a misunderstanding of information that has been provided. There is very little that can be done to avoid an investigation in these circumstances. However, very often an investigation is the result of affairs that the taxpayer is aware of, and for some taxpayers they know that eventually, one day IRAS will be asking questions and may investigate them. These are the situations where a tax investigation, and the worst aspects of one, can be avoided.

 

Contact us if you have any question that is not in the FAQ. We have a team of experience tax advisors that will work to resolve your tax investigation, tax enquiry or tax dispute with IRAS.

Contact Number: +(65) 6222 0289 Email: enquiry@nladfk.com

 

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