What happens when my company fails to comply with the requirements of IRAS (Inland Revenue Authority of Singapore)?

In case a company fails to comply with the requirements of IRAS (Inland Revenue Authority of Singapore), it may face a penalty or court prosecution by IRAS. In some cases, violators may be required to pay a penalty amount of around S$1000 with owed taxes.

In case the tax is not paid within the time (one month from Notice of Assessment or NOA), a 5% penalty is imposed. Every month the penalty gets increased by 1% up to 12% of tax outstanding. If the tax remains unpaid, IRAS appoints an agent to recover the taxes or take out court proceedings against you.