Consequences for late or non-filing of tax returns
Failure to file Form PL-R together with audited financial statement by the due date is an offence.
IRAS may take the following enforcement actions if you fail to file by the due date:
- Issue an estimated Notice of Assessment. You must pay the estimated duty within 1 month
- Offer to compound the offence
- Summon the club or persons responsible for running of the club (including the Director/Chairman) to Court
Estimated Notice of Assessment
IRAS may issue an estimated Notice of Assessment based on your past lottery or gaming machines turnover or any information that IRAS may have. IRAS may make assumptions in estimating any increase.
If you receive an estimated Notice of Assessment, you must:
- Pay the estimated tax within 1 month from the date of the Notice of Assessment
You must pay the estimated tax even if you intend to object to the assessment or are awaiting the outcome of the objection. There will be penalties for late payment.
- File an objection if you disagree with the estimated tax assessment
You must file an objection to the assessment within 14 days from the date of the Notice of Assessment.
When filing the objection, you must submit the Form PL-R and audited financial statements. Otherwise, the estimated assessment will not be revised.
If all the documents are submitted, your objection to the estimated tax assessment will be reviewed and excess tax paid will be refunded.
Offer of composition
Instead of taking prosecution actions, IRAS may allow you to avoid prosecution by paying a composition amount.
A composition amount not exceeding $2,500 for each offence may be offered depending on your club’s past compliance records. A notice will be sent to inform you of the composition amount. You must pay the composition amount and file the overdue tax return and documents by the due date to avoid prosecution.
Paying the composition amount
You can pay via Internet Banking Fund Transfer in your bank's portal, quoting the 14-digits payment slip number in the reference field. IRAS bank account details can be found on our payment webpage.
The payment will be processed within 3 working days if the payment slip number is furnished.
Legal actions may still be taken against you if you do not file the outstanding tax return after paying the composition amount. The payment made will be used to settle any unpaid tax.
Appealing for waiver of composition amount
Appeals can be made via email to [email protected]. Appeals will only be considered if:
- You have submitted the outstanding tax returns and/or documents by the due date stated in the offer of composition; and
- You have filed your tax return on time for the past 2 years
Court summons
A summons may be issued to your club and/or your club directors to attend Court on a specified date if IRAS does not receive:
- The required tax return and/or documents by the due date
- Payment of the composition amount by the due date
If you do not wish to attend Court, you must do all of the following actions at least 1 week before the Court date:
- File the outstanding tax return and/or documents
- Pay the composition amount
Postponement of Court hearing
If you need more time to file and/or pay the composition amount, your club’s representative, must attend Court on the Court date with a Letter of Authorisation to appeal for postponement.
Attending Court
Failure to attend Court will result in further legal actions taken against the club (i.e. a warrant of arrest may be issued against the club director).
In Court, if convicted of the offence, the club may face a fine not exceeding $5,000 for each offence.
You must still file the outstanding documents. Otherwise, further legal actions may be taken.
Filing outstanding Form PL-R
Download a copy of Form PL-R and submit the completed form by post. Learn more about filing Form PL-R.