Accounting for and payment of tax, etc.
41.—(1) The Minister may —(a)
make regulations to make provision for the form and manner of, and the time for, the keeping of accounts, making of returns and payment of tax;[Act 35 of 2022 wef 01/01/2023]
(b)
require any taxable person supplying goods or services to any other person to provide the other person with an invoice (called in this section a tax invoice if it is required by the regulations to be provided to a taxable person) containing statements of such particulars as may be specified in the regulations, including but not limited to any of the following:(i)
the particulars of the supply;
(ii)
the tax chargeable on it;
(iii)
the person by whom the goods or services are supplied;
(iv)
the person to whom the goods or services are supplied;
(c)
provide for the circumstances in which a document by a taxable person purporting to be a tax invoice in respect of a supply of goods or services to the taxable person by another taxable person, is treated as a tax invoice required under paragraph (b) to be provided by the taxable person supplying the goods or services; and
(d)
require any taxable person making any exempt supply to another person to provide that other person, within such time as may be prescribed or such time as the Comptroller may allow, with an invoice containing such particulars as may be so specified, including but not limited to particulars of the supply and the persons by and to whom the supply is made.[20/2010; 19/2012; 37/2017]
(1A) Without affecting paragraph (b) of subsection (1), regulations made under that paragraph may provide that the Comptroller may, for the protection of revenue, direct any taxable person in writing to include in any invoice (whether or not a tax invoice) provided by the taxable person, statements of particulars that are required by the Comptroller.[37/2017]
(2) Regulations made under this section may, where they require an invoice to be provided in connection with any description of supply, require it to be provided within a prescribed time after the supply is treated as taking place, and may allow for that time to be extended in accordance with general or special directions given by the Comptroller.[37/2017]
(3) Regulations made under this section may make special provision for such taxable supplies by retailers of any goods or of any description of goods or of services or any description of services as may be determined by or under the regulations and, in particular —(a)
for permitting the value which is to be taken as the value of the supplies in any prescribed accounting period or part thereof to be determined, subject to any limitations or restrictions, by such method or one of such methods as may have been described in any written notice issued by the Comptroller pursuant to the regulations and not withdrawn by a further written notice or as may be agreed with the Comptroller;
(b)
for determining the proportion of the value of the supplies which is to be attributed to any description of supplies; and
(c)
for adjusting that value and proportion for periods comprising 2 or more prescribed accounting periods or parts thereof.
(4) Regulations made under this section may make provision —(a)
whereby, in such cases and subject to such conditions as may be determined by or under the regulations, tax in respect of a supply may be accounted for and paid by reference to the time when consideration for the supply is received; and any such regulations may make such modification of this Act (including in particular, but without limiting the power, the provisions as to the time when, and the circumstances in which, credit for input tax is to be allowed) as appear to the Minister necessary or expedient;
(b)
for the keeping of accounts in electronic form in a computer;
(ba)
for the making and submission of returns through the electronic service, and for —(i)
requiring any prescribed class of persons to make and submit prescribed types of returns through the electronic service, except —(A)
in such exceptional circumstances as the Comptroller may determine; or
(B)
in such other circumstances as may be prescribed; and
(ii)
any procedure relating to the making and submission of returns through the electronic service;
(bb)
for the making of declarations to verify returns through the electronic service;
(c)
for treating tax chargeable in one prescribed accounting period as chargeable in another such period;
(d)
with respect to the making of entries in accounts for the purpose of making adjustments, whether for the correction of errors or otherwise;
(e)
for the correction of errors including errors in electronic transmission and messages;
(f)
for requiring that tax on the supply of goods or services to a person other than a taxable person be included in the price or other consideration for the supply quoted, advertised or published unless exempted under such regulations and subject to such conditions as the Comptroller may impose; and
(g)
for requiring taxable persons to display or indicate such information, sign or document relating to the price of goods or services, the registration of the taxable person or the tax as may be specified and in such manner as may be provided in the regulations.[38/2005]
(5) Regulations made under this section may make different provisions for different circumstances and may provide for different dates as the commencement of prescribed accounting periods applicable to different persons.
(6) The provisions made by regulations under this section for cases where goods are treated as supplied by a taxable person by virtue of paragraph 6 of the Second Schedule may require the tax chargeable on the supply to be accounted for and paid, and particulars thereof to be provided, by such other person and in such manner as may be specified by the regulations.
(7) At the end of a prescribed accounting period —(a)
the amount of tax due from any person that is the person’s output tax after deduction of input tax allowable under section 20; or
(b)
the amount due to any person under section 19(5),
as the case may be, is zero if the amount is less than $5 or such other amount as the Minister may by order prescribe.
[20/2010]
(8) At the end of a prescribed accounting period, the amount of tax due from a person that is tax accounted for by the person pursuant to regulations made under section 27A is nil if it is less than $5 or such other amount as the Minister may by order prescribe.[20/2010]
Use of electronic service
42.—(1) Any person may —(a)
register himself, herself or itself or request to cancel the person’s registration, as a taxable person; or
(b)
file or submit any return, declaration, document, application or information, if the person is required to do so,
through the electronic service.
(2) The Minister may make regulations prescribing —(a)
the circumstances in which the Comptroller may serve any notice, direction, order, permit, receipt or other document through the electronic service on a person assigned an account with the electronic service; and
(b)
the manner in which a person who has been served through the electronic service with any notice, direction, order, permit, receipt or other document is to be notified of the transmission of an electronic record of it to the person’s account with the electronic service.
(3) Regulations made for the purpose of subsection (2) —(a)
may provide for service of any notice, direction, order, permit, receipt or other document through the electronic service in circumstances where —(i)
the person consents to such service; or
(ii)
the Comptroller gives the person notice of the Comptroller’s intention of such service and the person does not refuse such service;
(b)
may provide for the giving of any notice of the Comptroller’s intention, or the person’s consent or refusal, mentioned in paragraph (a), including —(i)
the matters that must be contained in the notice; and
(ii)
the time within which, and the form and manner in which, the consent or refusal must be received by the Comptroller;
(c)
may provide when the consent or refusal of the person takes effect and when the Comptroller must give effect to such consent or refusal; and
(d)
may provide for any other matter necessary or incidental to the purposes in paragraphs (a), (b) and (c) and subsection (2)(a).[Act 33 of 2022 wef 26/04/2024]
Production of tax invoices by computer
43.—(1) For the purposes of any provision contained in or having effect under this Act which relates to tax invoices, a person is treated as issuing, or as providing another person with, a tax invoice if the requisite particulars are recorded in a computer and transmitted by electronic means and without the delivery of any equivalent document or counterpart in paper form.
(2) Any provision in this Act relating to tax invoices is treated as complied with by the production by means of a computer of any material other than a document in writing, by delivering any such material so produced or by making any such transmission as is mentioned in subsection (1) where the person producing or delivering the material or making the transmission and, in the case of delivered material or a transmission, the person receiving it has complied with such requirements as may be imposed by the Comptroller from time to time.
Giving of receipts
44.—(1) Every taxable person must issue a serially printed receipt for all consideration in money or digital payment tokens received in respect of every taxable supply (except for a supply in respect of which a tax invoice has been issued) and must retain a duplicate of each receipt.[33/2019]
(1A) Where a computer or other machine is used for recording taxable supplies, receipts may be dispensed with if the Comptroller is satisfied that such computer or machine substantially records accurately all moneys and digital payment tokens received in respect of taxable supplies.[33/2019]
(2) The Comptroller, or an officer duly authorised by the Comptroller in that behalf, may direct any taxable person to issue and retain the receipts and their duplicates referred to in subsection (1) in the form and manner approved by the Comptroller, or an officer duly authorised by the Comptroller, as the case may be.
(3) The Comptroller, or an officer duly authorised by the Comptroller in that behalf, may waive all or any of the provisions of subsection (1) in respect of any taxable person.
(4) Any person who contravenes this section or any direction issued under this section shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $5,000.
Power of Comptroller to assess tax due
45.—(1) Where a person has failed to make any returns required under this Act or to keep any documents and afford the facilities necessary to verify such returns or where it appears to the Comptroller that such returns are incomplete or incorrect, the Comptroller may to the best of the Comptroller’s judgment assess the amount of tax due from that person and notify that person of it.
(2) In any case where —(a)
an amount has been repaid to any person as being a repayment of tax, which ought not to have been repaid; or
(b)
an amount has been paid to any person as being due to the person in accordance with section 19(5), which ought not to have been paid to the person,
the Comptroller may assess that amount as being tax due from the person for the prescribed accounting period in which the amount was repaid or (as the case may be) paid and accordingly notify the person of the assessment.
(3) Where a person is assessed under subsections (1) and (2) in respect of the same prescribed accounting period, the assessments may be combined and notified to the person as one assessment.
(4) Where the person failing to make a return, or making a return which appears to the Comptroller to be incomplete or incorrect, was required to make the return as a personal representative, trustee in bankruptcy, receiver, liquidator or person otherwise acting in a representative capacity in relation to another person, subsection (1) applies as if the reference to tax due from the person included a reference to a tax due from that other person.
(5) An assessment under subsection (1) or (2) of an amount of tax due for any prescribed accounting period must not be made —(a)
in the case of a prescribed accounting period ending before 1 January 2007, more than 7 years after the end of the prescribed accounting period; and
(b)
in the case of a prescribed accounting period ending on or after 1 January 2007, more than 5 years after the end of the prescribed accounting period.[28/2007; 42/2020]
(5A) Despite subsection (5), where, in the opinion of the Comptroller, any form of fraud or wilful default has been committed by or on behalf of any person in connection with or in relation to tax, the Comptroller may for the purpose of making good any loss of tax or payment or refund of tax attributable to fraud or wilful default, make an assessment at any time.
(6) Where a taxable person has acquired or imported any goods in the course or furtherance of any business carried on by the taxable person, the Comptroller may require the taxable person from time to time to account for the goods.
(6A) If the taxable person fails to prove that —(a)
the goods have been or are available to be supplied by the taxable person or have been exported from Singapore otherwise than by way of supply; or
(b)
the goods have been lost or destroyed,
the Comptroller may assess to the best of the Comptroller’s judgment and notify the taxable person of the amount of tax that would have been chargeable in respect of the supply of the goods if they had been supplied by the taxable person.
(7) In any case where —(a)
as a result of a person’s failure to make a return for a prescribed accounting period, the Comptroller has made an assessment under subsection (1) for that period;
(b)
the tax assessed has been paid but no proper return has been made for the period to which the assessment related; and
(c)
as a result of a failure to make a return for a later prescribed accounting period, being a failure by the person referred to in paragraph (a) or a person acting in a representative capacity in relation to the firstmentioned person, as mentioned in subsection (4), the Comptroller finds it necessary to make another assessment under subsection (1),
then, if the Comptroller thinks fit, having regard to the failure referred to in paragraph (a), the Comptroller may specify in the assessment referred to in paragraph (c) an amount of tax greater than that which the Comptroller would otherwise have considered to be appropriate.
(8) Where it appears to the Comptroller that the amount which ought to have been assessed in an assessment under this section exceeds the amount which was so assessed, the Comptroller may —(a)
under the same provision as that assessment was made; and
(b)
within the period during which that assessment could have been made,
make a supplementary assessment of the amount of the excess and must notify the person accordingly.
(9) Where an amount has been assessed and notified to any person under subsection (1), (2), (6A) or (8), it is, subject to the provisions of this Act as to review and appeals, deemed to be an amount of tax due from the person and may be recovered accordingly, unless, or except to the extent that, the assessment has subsequently been withdrawn or reduced.
(10) The Comptroller may at any time make all such alterations in or additions to an assessment made under this section as the Comptroller thinks necessary to ensure the correctness thereof and notify the person accordingly.
(10A) Where the Comptroller raises an assessment under subsection (1) upon the failure of a person to make any returns, and, subsequent to such assessment, the person makes a return, the Comptroller may take into account the return and revise the assessment as the Comptroller deems fit.[28/2007]
(10B) For the purpose of subsection (10A), where a person makes a return in respect of a prescribed accounting period ending on or after 1 January 2007 more than 5 years after the end of the prescribed accounting period, the return is treated as not having been made.[28/2007; 42/2020]
(11) For the purposes of this section, notification to a personal representative, trustee in bankruptcy, receiver, liquidator or person otherwise acting in a representative capacity (each called a person acting in a representative capacity) is treated as notification to the person in relation to whom the person acting in a representative capacity so acts.
Surcharge on supplies forming part of arrangements causing loss of public revenue
45A.—(1) Where —(a)
a taxable person enters into a supply or purported supply that the taxable person should have known was a part of an arrangement mentioned in section 20(2A); and[Act 35 of 2022 wef 01/01/2023]
(b)
the taxable person makes a claim for credit for the input tax on the supply or purported supply,
then, without affecting the power of the Comptroller to make an assessment under section 45(1) or (2) on the basis that the taxable person is not entitled to credit for the input tax because of section 20(2A), a surcharge equal to 10% of the amount of the input tax is imposed on the taxable person and is recoverable by the Comptroller from the taxable person as a debt due to the Government.
[42/2020]
[Act 35 of 2022 wef 01/01/2023]
(2) Nothing in this section prevents the applicability of section 20(2A) to a case, or any action of the Comptroller under subsection (1) in a case, from being questioned in an appeal against an assessment mentioned in subsection (1) in accordance with Part 8.[42/2020]
(3) Despite any objection under section 49 to or appeal under Part 8 lodged against an assessment of the Comptroller mentioned in subsection (1), the surcharge must be paid to the Comptroller —(a)
within one month after the date a written notice of the surcharge is served in accordance with section 87(1) on the taxable person; and
(b)
in the manner stated in the notice.[42/2020]
(4) The Comptroller may, in the Comptroller’s discretion, and subject to any term and condition (including the imposition of interest on the surcharge) as the Comptroller may impose, extend the time within which the payment of the surcharge is to be made.[42/2020]
(5) The Comptroller may, for good cause, remit wholly or in part any surcharge payable to the Comptroller under this section.[42/2020]
(6) If, upon any objection under section 49 to or appeal under Part 8 lodged against an assessment mentioned in subsection (1), the assessment is varied or annulled, then the surcharge is correspondingly increased, reduced or annulled (as the case may be), and —(a)
if the surcharge is increased, subsections (1), (3), (4) and (5) apply to the increase in amount of the surcharge as they apply to the surcharge; or
(b)
if the surcharge is reduced or annulled and it has already been paid to the Comptroller, the amount of the reduction or the entire amount (including any interest paid to the Comptroller on the amount) must be refunded.[42/2020]
Duty to keep records
46.—(1) Every taxable person must keep the following records:(a)
the taxable person’s business and accounting records;
(b)
the taxable person’s accounts as required by regulations made under section 41;
(c)
copies of all invoices and receipts issued by the taxable person;
(d)
invoices received by the taxable person;
(e)
documentation relating to importations and exportations by the taxable person;
(f)
all credit notes, debit notes or other documents which evidence an increase or decrease in consideration that are received, and copies of all such documents issued by the taxable person;
(fa)
where applicable, records of the reasonable steps taken by the taxable person to determine whether or not the supply made to the taxable person was a part of an arrangement mentioned in section 20(2A);
(g)
such other records as may be prescribed.[37/2017; 42/2020]
(1AA) Any person who is required to account for tax on a reverse charge supply must, in addition to the records mentioned in subsection (1), maintain the following:(a)
sufficient records of the reverse charge supply to enable the following particulars to be ascertained:(i)
the name and address of the person or branch, or member of the group mentioned in section 30(1A), whose supply gave rise to the reverse charge supply under section 14 (called in this section the supplier);[Act 34 of 2021 wef 01/01/2022]
(ii)
the date on which, or the period during which, the distantly taxable goods or services under the supply made by the supplier were in fact received;[Act 34 of 2021 wef 01/01/2022]
(iii)
a description of the distantly taxable goods or services in fact supplied;[Act 34 of 2021 wef 01/01/2022]
(iv)
the consideration for the supply made by the supplier;[Act 34 of 2021 wef 01/01/2022]
(v)
the time by which payment of the consideration for the supply made by the supplier is required;[Act 34 of 2021 wef 01/01/2022]
(vi)
the reference number of any invoice relating to the supply made by the supplier;[Act 34 of 2021 wef 01/01/2022]
(vii)
any contract, agreement or arrangement entered into in respect of the supply made by the supplier;[Act 34 of 2021 wef 01/01/2022]
(viii)
where any invoice, contract, agreement or arrangement is in a foreign language, a translation of the same into English, if the Comptroller requires;
(ix)
such other records as may be prescribed;
(b)
where an election under section 11C(8)(c) or 14(5) or (6) has been made, a record of the election and such information and supporting documents relating to the election, in such form and manner, as required by the Comptroller.[52/2018]
(1A) Without affecting subsection (1) or (1AA), the Comptroller may, for the protection of revenue, direct in writing any taxable person to keep records of the models and serial numbers of any goods supplied to or by the taxable person; and the taxable person must comply with the direction.[37/2017; 52/2018]
(1B) Where the taxable person is an operator of an electronic marketplace mentioned in the Seventh Schedule, the duty of the operator to keep records under this section includes records relating to —(a)
where paragraph 3(2)(b)(ii) of the Seventh Schedule applies, all supplies of services of the relevant overseas underlying supplier made to any person belonging in Singapore; [Act 34 of 2021 wef 01/01/2022]
(aa)
where paragraph 3(3A)(b)(i)(B) of the Seventh Schedule applies —(i)
if the operator has not made an election under paragraph 4A of the Seventh Schedule — all supplies of distantly taxable goods that the operator is treated as making instead of any underlying supplier; and
(ii)
if the operator has made an election under paragraph 4A of the Seventh Schedule — all supplies mentioned in sub‑paragraph (i), and supplies of goods that are treated as made by the operator instead of the underlying supplier and that are also treated as not being supplies of distantly taxable goods under that paragraph;[Act 34 of 2021 wef 01/01/2022]
(b)
where the operator makes an election under paragraph 5 of the Seventh Schedule, all supplies of services of any local underlying supplier (that are treated as made to the operator) in fact made to any person belonging in Singapore; and[52/2018]
[Act 34 of 2021 wef 01/01/2022]
(c)
where the operator belongs in Singapore and has been granted approval under paragraph 6 of the Seventh Schedule —(i)
if the operator has not made an election under paragraph 5 of the Seventh Schedule — all supplies of services of any overseas underlying supplier (that are treated as made to the operator) in fact made to a registered person; and
(ii)
if the operator has made an election under paragraph 5 of the Seventh Schedule — all supplies of services of any overseas underlying supplier and any local underlying supplier (that are treated as made to the operator) in fact made to a registered person.[Act 34 of 2021 wef 01/01/2022]
(1C) Despite subsection (1), a registered (Seventh Schedule — pay only) person need not keep records of supplies of goods or services made to the person or imports of goods by the person.[52/2018]
(1D) Where the taxable person is a redeliverer mentioned in the Seventh Schedule that is treated as making supplies of goods under the Seventh Schedule, the duty of the redeliverer to keep records under this section includes records relating to —(a)
the receipt issued by the supplier, underlying supplier or operator of the electronic marketplace of the goods or other confirmation by the supplier, underlying supplier or operator of the value of the consideration for each supply; or
(b)
if the receipt or other confirmation mentioned in paragraph (a) is not available, the value of the consideration for the supply disclosed to the redeliverer by the person (X) arranging with the redeliverer for the delivery of the goods to a place in the customs territory or a person acting on X’s behalf,
being a supply of distantly taxable goods, or a supply of distantly taxable goods that is treated (by reason of an election by the taxable person under paragraph 4A of the Seventh Schedule) as not being such a supply.
[Act 34 of 2021 wef 01/01/2022]
(2) Any records kept pursuant to this section must be preserved —(a)
in the case of records relating to a prescribed accounting period ending before 1 January 2007, for a period of not less than 7 years after the end of the prescribed accounting period; and
(b)
in the case of records relating to a prescribed accounting period ending on or after 1 January 2007, for a period of not less than 5 years after the end of the prescribed accounting period.[28/2007; 42/2020]
(3) The duty under this section to preserve records may be discharged by the preservation of the information contained therein by such means as the Comptroller may approve.
(3AA) Without affecting subsection (3), the Comptroller may direct in writing any taxable person to keep or preserve, or both keep and preserve, by any electronic means specified in the direction, any records under subsection (1), (1AA), (1A), (1B) or (1D) of the taxable person as the Minister may prescribe; and the taxable person must comply with the direction.[37/2017; 52/2018]
[Act 34 of 2021 wef 01/01/2022]
(3A) Where the information is preserved in accordance with subsection (3) or (3AA), a copy of any document forming part of the records is, subject to subsections (4) and (5), admissible in evidence in any proceedings, whether civil or criminal, to the same extent as the records themselves.[37/2017]
(4) The Comptroller may, as a condition of approving under subsection (3) any means of preserving information contained in any records, impose such reasonable requirements as appear to the Comptroller necessary for securing that the information will be as readily available to the Comptroller as if the records themselves had been preserved.
(5) A statement contained in a document produced by a computer is not by virtue of subsection (3A) admissible in evidence in civil or criminal proceedings except in accordance with the Evidence Act 1893.
(6) Any person who without reasonable excuse fails to comply with this section shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $5,000 or to imprisonment for a term not exceeding 6 months or to both and, in the case of a second or subsequent conviction, to a fine not exceeding $10,000 or to imprisonment for a term not exceeding 3 years or to both.
(7) In this section, “electronic marketplace”, “local underlying supplier”, “overseas underlying supplier” and “underlying supplier” have the meanings given by paragraph 1(1) of the Seventh Schedule.[Act 34 of 2021 wef 01/01/2022]
Comptroller to disregard certain transactions and dispositions
47.—(1) Subsection (1A) applies where the Comptroller is satisfied that the purpose or effect of any arrangement is directly or indirectly —(a)
to alter the incidence or postpone the time due of any tax which is payable by or which would otherwise have been payable by any person;
(b)
to relieve any person from any liability to pay tax or to make a return under this Act;
(c)
to reduce or avoid any liability imposed or which would otherwise have been imposed on any person by this Act;
(d)
to obtain for any person any credit for or refund of input tax or any increase of such credit or refund —(i)
which would not otherwise have been obtained; or
(ii)
which would not otherwise have been obtained at the time at which it was obtained; or
(e)
to obtain for any person any refund of tax chargeable, or any increase of any refund of tax chargeable, on a claim made in the case of a bad debt pursuant to regulations made under section 25, which would not otherwise have been obtained.[42/2020]
(1A) Without affecting any validity that the arrangement may have in any other respect or for any other purpose, the Comptroller must disregard or vary the arrangement and make any adjustment that the Comptroller considers appropriate so as to counteract any tax advantage obtained or obtainable by that person from or under that arrangement.[42/2020]
(1B) An adjustment under subsection (1A) includes an adjustment that results in one or more of the following (called in this section and section 47A additional tax):(a)
an increase in the amount of the tax payable by a person in relation to any prescribed accounting period;
(b)
a reduction in the amount of credit for input tax claimed by a person under sections 19 and 20 in relation to any prescribed accounting period;
(c)
a reduction in the amount of the refund of tax chargeable, on a claim made by a person in the case of a bad debt pursuant to regulations made under section 25 in relation to any prescribed accounting period.[42/2020]
(2) Without affecting subsection (1A), the Comptroller may, for the purposes of this section, deem —(a)
any person (not being, apart from this section, a taxable person) who is a party to or has participated in any way in any arrangement, to be a taxable person;
(b)
any supply of goods or services, whether or not a taxable supply, that is affected by or is part of any arrangement, to be both made to and made by any taxable person or a person deemed to be taxable under paragraph (a);
(c)
any supply of goods or services to take place in any prescribed accounting period that, but for any arrangement affected by this section, would have been the prescribed accounting period in which the supply was made; and
(d)
any supply of goods or services to have been made, or consideration for such supply to be given, at open market value.[42/2020]
(2A) An adjustment under subsection (1A) must not be made more than 5 years after the end of the prescribed accounting period in relation to which the adjustment is to be made.[42/2020]
(2B) Nothing in this section prevents the applicability of subsection (1) to a case, or any action of the Comptroller under subsection (1A) in a case, from being questioned in an appeal under Part 8 lodged against an assessment.[42/2020]
(2C) Despite any objection under section 49 to or appeal under Part 8 lodged against any additional tax, the additional tax must be paid to the Comptroller —(a)
within one month after the date a written notice of the adjustment is served in accordance with section 87(1) on the person to whom the adjustment is made; and
(b)
in the manner stated in the notice.[42/2020]
(2D) The Comptroller may, in the Comptroller’s discretion, and subject to any term and condition (including the imposition of interest on the additional tax) as the Comptroller may impose, extend the time specified in subsection (2C) within which payment is to be made.[42/2020]
(3) In this section and section 47A —“arrangement” means any agreement, contract, plan, understanding, scheme, trust, grant, covenant, disposition, transaction and includes all steps by which it is carried into effect;
“tax advantage” includes —(a)
any reduction in the liability of any person to pay tax;
(b)
any entitlement, earlier entitlement or increase in entitlement of a person to a credit for or refund of input tax;
(c)
any reduction in the total consideration payable by any person in respect of any supply of goods or services;
(d)
any postponement of the time when tax is due or payable; or
(e)
any entitlement or increase in entitlement of a person to a refund of tax chargeable, on a claim made in the case of a bad debt pursuant to regulations made under section 25.[42/2020]
(4) This section does not apply to any arrangement carried out for bona fide commercial reasons and had not as one of its main purposes the avoidance or reduction of tax or the obtaining of any tax advantage.[42/2020]
Surcharge on adjustments under section 47
47A.—(1) This section applies where any additional tax is imposed on a person under section 47(1A) in respect of a prescribed accounting period starting on or after 1 January 2021.[42/2020]
(2) In a case mentioned in subsection (1), a surcharge equal to 50% of the amount of the additional tax is imposed on the person and is recoverable by the Comptroller from the person as a debt due to the Government.[42/2020]
(3) Despite any objection under section 49 to or appeal under Part 8 lodged against the additional tax, the surcharge must be paid to the Comptroller —(a)
within one month after the date a written notice of the surcharge is served in accordance with section 87(1) on the person to whom the surcharge is imposed; and
(b)
in the manner stated in the notice.[42/2020]
(4) The Comptroller may, in the Comptroller’s discretion, and subject to any term and condition (including the imposition of interest on the surcharge) as the Comptroller may impose, extend the time within which payment of the surcharge is to be made.[42/2020]
(5) The Comptroller may, for good cause, remit wholly or in part any surcharge or interest payable to the Comptroller under this section.[42/2020]
(6) If, upon any objection under section 49 or appeal under Part 8, any additional tax is varied or annulled, then the surcharge is correspondingly increased, reduced or annulled (as the case may be), and —(a)
if the surcharge is increased, subsections (2), (3), (4) and (5) apply to the increased amount of the surcharge as they apply to the surcharge; or
(b)
if the surcharge is reduced or annulled and it has already been paid to the Comptroller, the amount of the reduction or the entire amount (including any interest paid to the Comptroller on the amount) must be refunded.[42/2020]
Assessment of penal tax
48.—(1) Where the Comptroller is satisfied that any person has wilfully with intent to evade or to assist any other person to evade tax —(a)
omitted or understated any output tax or overstated any input tax in any return made under this Act;
(b)
made any false statement or entry in any return, claim or application made under this Act;
(c)
given any false answer, whether verbally or in writing, to any question or request for information asked or made in accordance with the provisions of this Act;
(d)
prepared or maintained or authorised the preparation or maintenance of any false books of account or other records or falsified or authorised the falsification of any books of account or records; or
(e)
made use of any fraud, art or contrivance whatsoever or authorised the use of any such fraud, art or contrivance,
the Comptroller may to the best of the Comptroller’s judgment assess by way of penalty for that offence a tax (called in this section the penal tax) not exceeding 3 times the amount of tax which has or would have been undercharged in consequence of the offence or which would have been undercharged if the offence had not been detected and notify the person accordingly.
(2) Where an amount has been assessed and notified to any person under subsection (1), it is, subject to the provisions of this Act as to review and appeals, deemed to be an amount of tax due from the person and may be recovered accordingly, unless, or except to the extent that, the assessment has subsequently been withdrawn or reduced.
(3) For the purposes of this section, notification to a personal representative, trustee in bankruptcy, receiver, liquidator or person otherwise acting in a representative capacity (each called a person acting in a representative capacity) is treated as notification to the person in relation to whom the person acting in a representative capacity so acts.
(4) The assessment or recovery of penal tax is not in any manner barred or affected by the fact that the person referred to in subsection (1) —(a)
has been convicted of an offence under section 62 where the assessment or recovery of penal tax was made pursuant to an order made by the court on such conviction; or
(b)
has not been convicted of any offence under this Act but no proceedings may be taken in respect of any offence against a person who has paid the penal tax assessed against the person for that same offence.
(5) References in this section to evading tax and to making use of any fraud, art or contrivance whatsoever or authorising the use of any such fraud, art or contrivance are to be construed in accordance with section 62(5) and (3), respectively.
Source: Singapore Statutes Online (Attorney-General's Chambers), © Government of Singapore.
