In a Forum Reply dated 5 October 2026, IRAS clarified that taxpayers will not be penalised for inaccuracies in tax returns arising from incorrect details submitted by their appointed intermediaries, such as tax agents, payroll vendors, or corporate secretarial firms. This assurance addresses concerns raised by taxpayers who received notices of assessment reflecting errors made by third-party preparers. IRAS stated that under the Income Tax Act and the Goods and Services Tax Act, the legal obligation to file accurate returns rests with the taxpayer; however, the Authority adopts an administrative approach to waive penalties where the taxpayer has exercised due diligence in selecting a competent intermediary and promptly rectifies the error upon discovery. The reply references the IRAS Penalty Framework and the Voluntary Disclosure Programme, outlining the conditions for penalty waiver: the taxpayer must not have contributed to the error, must have a clean compliance record, and must cooperate fully with IRAS investigations.
Key Takeaways
- Due Diligence Requirement: Taxpayers are expected to engage qualified and reputable intermediaries, verify the intermediary’s credentials (e.g., IRAS Accredited Tax Adviser status), and maintain oversight of the filing process. IRAS will assess whether the taxpayer took reasonable steps to review the return before submission, such as checking key figures against source documents.
- Remediation and Voluntary Disclosure: Where an intermediary error is identified, the taxpayer should immediately file an amended return via myTax Portal or engage the intermediary to do so. If the error results in undercharged tax, the taxpayer should make voluntary disclosure to qualify for reduced penalties (up to 100% waiver) under the Voluntary Disclosure Programme. Interest on late payment may still apply.
- Intermediary Accountability: IRAS emphasised that intermediaries remain subject to professional and regulatory obligations. Repeated errors by the same intermediary may trigger IRAS compliance reviews, suspension of e-filing privileges, or referral to professional bodies. Taxpayers are advised to report negligent intermediaries to IRAS for investigation.
- Record-Keeping and Communication: Taxpayers should retain all correspondence with intermediaries, including instructions provided and confirmations received. Clear written instructions regarding income sources, deductions, and exemptions reduce the risk of misinterpretation. IRAS recommends annual review meetings with intermediaries before filing deadlines.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement