Late payment or non-payment of income tax by Clubs and Associations

Key requirements

An objection does not defer payment. Unpaid tax can attract 5% initially and, under the stated sixty-day trigger, additional 1% for completed months up to 12% of unpaid tax. IRAS can recover through the club’s bank, tenant or lawyer and take legal action. Successful assessment revision may recalculate the tax and penalty, but waiting for that revision first can create arrears. If using an approved instalment plan, monitor the deductions and its conditions; cancellation can accelerate the remaining balance. These income-tax penalties differ from the gambling-duty monthly 5% schedule.