Which of the following is an illegal method of reducing your current tax liability?
The vast majority of our taxpayers are compliant. However, a minority of them evade their taxes intentionally. Such behaviour is unacceptable and unfair towards those who are compliant and who contribute their fair share towards nation building. Tax evasion is when someone has deliberately provided IRAS with inaccurate or incomplete
information about their activities to reduce their tax liability or obtain undue tax credits and refunds. However, not all people or businesses who show these signs are deliberately evading tax. By telling us what you know, we can investigate the matter to find out truth and take actions against those who have committed tax offences. If you are
aware of someone who has evaded tax in Singapore or have information about tax-related fraudulent activities, you may provide information to IRAS using the reporting template. Your information could help to keep Singapore tax system fair for everyone. Your identity and all information / documents provided by you will be kept confidential. You may also choose to remain anonymous. Useful Information You Can Provide UsWe will review the information that you have provided and will initiate investigation if our review indicates that a tax offence has likely been committed. To assist us in our review, please provide the following:
What We Do With Your InformationWe take every report of tax evasion seriously and will make an independent evaluation of the case using the information provided as well as other information available to us. Where we decide that an investigation is warranted, we will follow up accordingly. Please note that IRAS is bound by strict secrecy provisions. Thus, we will not be able to update you on how we deal with the information provided including; whether we have decided to commence investigation and the status or outcome of the case in the event that we have investigated the case. IRAS will not handle matters which are not related to tax evasion, e.g. personal or internal disputes among business partners, commercial disputes between private parties. RewardsYou may request for a reward in relation to the information and/or documents you have provided. A reward based on 15% of the tax recovered, capped at $100,000, would be given if the information and/or documents you provided lead to a recovery of tax that would otherwise have been lost. To be considered for a reward, you will need to:
We may request you to come to IRAS subsequently for identity verification. IRAS will ensure that the identities of informer are kept strictly confidential. To be eligible for the reward, you must not have participated, involved, assisted, abetted or “planned and initiated” the tax evasion/tax fraud or provided false or misleading information to IRAS. All reward payments are made solely at the discretion of the Commissioner of Inland Revenue, after the investigation has completed and taxes are collected. At that point, IRAS will contact those informer who are to be rewarded. Due to tax secrecy provisions, IRAS will not update you on the status of the case that you have reported on or disclose any follow-up action(s) to you. FAQs
Will my identity remain confidential?Your identity and all information/documents provided will be kept strictly confidential. Under Section 104A of the Income Tax Act and Section 84A of the Goods and Services Tax Act, witnesses during any civil or criminal proceedings will not be required to disclose information that may lead to the discovery of an informer’s identity. If any document (which is in evidence or liable to inspection in any civil or criminal proceedings) contains any entry in which any informer is named or described or which may lead to the discovery of the informer’s identity, the entry will be concealed from view or removed to protect the informer’s identity. If the court after full enquiry into the case believes that the informer wilfully made a material statement which the informer knew or believed to be false or did not believe to be true; or the court is of the opinion that justice cannot be fully done between the parties to the proceedings without the discovery of the informer, the court may permit enquiry and require full disclosure concerning the informer.
Can I receive immunity from prosecution if I provide information about someone evading tax?If you are merely providing information about someone else evading tax, you will not be prosecuted for tax evasion or for assisting another person to evade tax. However, we will institute prosecution if we have evidence that you have evaded tax or have assisted another person to evade tax. Taxpayers who come forward and voluntarily disclose past actions involving wilful intent to evade taxes may be accorded the treatment of having their offences compounded at a reduced penalty rate of 200%, instead of being prosecuted. Please refer to IRAS' Voluntary Disclosure Programme ("VDP") for more details. The decision of whether to accord VDP treatments to an informant is made solely at the discretion of the Comptroller. Which of the following is the best way to reduce your tax liability?The key to minimizing your tax liability is reducing the amount of your gross income that is subject to taxes. Consider increasing your retirement contributions. Putting pre-tax dollars into an employer-sponsored retirement plan like a 401(k) is one easy way to reduce your taxable income for the year.
How you can minimize your tax liability through tax avoidance?Some common examples include: Using pre-tax dollars to fund retirement savings plans such as an IRA or 401k. Taking allowable deductions for items such as mortgage interest, property taxes, medical expenses, business expenses, and charitable contributions. Claiming allowable credits such as the child tax credit.
What are some examples of tax evasion?Tax avoidance is legal; tax evasion is criminal. Deliberately under-reporting or omitting income. ... . Keeping two sets of books and making false entries in books and records. ... . Claiming false or overstated deductions on a return. ... . Claiming personal expenses as business expenses. ... . Hiding or transferring assets or income.. How can you reduce your taxable income quizlet?Taxable income can be reduced by personal exemption and itemized or standard deduction. Taxable income is a function of adjusted gross income (AGI), deductions, and exemptions. Standard deduction—government's best estimate of what the average person would deduct if itemizing.
|