Penalties for Errors in Tax Returns

Key requirements

IRAS distinguishes cases without intent to evade from intentional evasion. The published maximum consequences differ: non-intentional errors may attract a penalty up to 200% of undercharged tax, a fine up to S$5,000 or imprisonment up to three years; intentional evasion can carry higher consequences. These are statutory maxima rather than an automatic charge for every mistake. IRAS considers negligence, reasonable excuse, past compliance and cooperation during an audit. Repeating a known error or failing to keep records can aggravate the position. A timely, complete voluntary disclosure may qualify for reduced penalties under the separate VDP rules. Correcting the return and paying additional tax should be addressed promptly.