About 262,000 companies are expected to file CIT Returns in Singapore this year. The Inland Revenue Authority of Singapore (IRAS) has issued a  reminder, on 26 September 2024, to all companies, including those with no business activities or those in a loss position, and their directors to file their Year of Assessment (YA) 2024 CIT Returns by 30 November 2024.

IRAS has observed that each year, about one in 10 companies fail to comply with their CIT filing obligations despite repeated reminders. In 2023, over 4,700 companies were prosecuted for late or non-filing tax returns. The total penalties for late or non-filing tax returns exceeded SGD 4.9 million.

Enforcement actions taken against non-compliant companies

Companies not filing their CIT Returns by the due date can be fined up to SGD 5,000. Depending on factors such as the company’s past compliance records, IRAS may compound the offence instead of taking prosecution actions.

A company that receives a letter of composition must pay the composition amount and file the overdue tax return, failing which it will be issued a Notice to Attend Court. Errant companies that fail to file their returns for two years or more may be ordered by the courts to pay a penalty twice the amount of tax assessed in addition to the fine.

Company directors held liable for late or non-filing of CIT returns

For companies that do not file their returns, IRAS may issue notices to the company directors to request the company’s financial information. Directors who fail to furnish the information by the stipulated date will be subject to heavier penalties of up to SGD 10,000 or court attendance.

Failure to attend court may result in a warrant of arrest issued against the company director. In 2023, 1,690 court summons were issued to directors who did not comply with these notices.