IRAS reviews tax claims by over 3,000 taxpayers

Convicted false claimants may be fined, sent to jail, or both.

Singapore’s Inland Revenue Authority of Singapore (IRAS) has identified more than 3,000 taxpayers who made employment expense claims similar to those promoted in misleading information circulating online.

The tax authority said it is reviewing the claims and has contacted, or will contact, affected taxpayers to verify their declarations and request supporting documents.

False, incorrect, or unsupported claims could result in additional tax and penalties of up to three times the tax undercharged. Individuals convicted in court may also face a fine of up to $10,000, imprisonment of up to three years, or both.

IRAS warned taxpayers against relying on unverified advice encouraging them to claim employment expenses they did not incur or expenses that are not tax-deductible.

Employment expenses are deductible only if they are incurred wholly and exclusively for official duties, are not reimbursed by employers, and are supported by proper records, IRAS said.

Taxpayers must retain receipts, invoices, and other supporting documents to substantiate their claims. IRAS said estimates are not acceptable and advised those unsure about the eligibility of an expense to seek clarification before claiming it.

The authority said it would continue monitoring employment expense claims and taking enforcement action against deliberate abuse of the tax system.