A certified public accountant, Mr Freddie Chin Kek Khiong (“Chin”), 66, faced a penalty of $51,760.98 for under-reporting his income.

Chin runs the business of book-keeping, auditing and tax services. In his income tax returns for Years of Assessment 2006 and 2007, he had without reasonable excuse, under-reported income of $100,600 and $54,972 respectively.

For the two charges of under-reporting his income, Chin has to pay a penalty of $51,760.98, which is two times the tax undercharged of $25,880.49.

IRAS assesses businesses that pose compliance risks using its computerised analysis programmes and select such businesses for audit. Chin’s under-reporting was discovered through one of its regular audit programmes that target a cross-section of industries and professional groups.

Higher Standards expected of Tax / Accounting Professionals

IRAS takes a serious view of such offences by tax or accounting professionals. Tax or accounting professionals are expected to understand the importance of proper record keeping, of preparing financial statements and of filing accurate and timely income tax returns to IRAS. IRAS will not hesitate to take actions against those who do not comply with such requirements without reasonable excuse.

Voluntary Disclosure Programme

Businesses and individuals could have made mistakes in their tax returns because they were negligent or were unclear about their tax obligations. IRAS does not view such mistakes as tax evasion. Should businesses or individuals discover any errors or omissions, IRAS encourages them to come forward voluntarily so we may help them resolve the issues. IRAS will reduce the penalties for such voluntary disclosures. More information on the Voluntary Disclosure Programme is available in IRAS' e-Tax Guide (PDF, 476KB).

Taxpayers who wish to disclose errors made in their declarations can write to:

Inland Revenue Authority of Singapore
Investigation & Forensics Division
55 Newton Road, Revenue House
Singapore 307987
Email: [email protected]

Inland Revenue Authority of Singapore