You are advised that the new administrative concession for lodging a valid objection against any Notice of Assessment (“NOA“) issued on or after 1 Jan 2014 will be two months from the date of the issue of the NOA. This concession is to allow more time for taxpayers to lodge a valid objection with supporting information. As an example, if you receive a NOA dated 9 Jan 2014 and you do not agree with the assessment, you have until 9 March 2014 to file a valid objection with IRAS against the NOA.
Despite the new administrative concession, the tax assessed must still be paid within 1 month from the date of the issue of the NOA.
New Administration of the Objection Process from 1 Jan 2014
IRAS has indicated that the following milestones will be set in the new objection process
- Request for Information – If more information is required to review the tax issue under objection, taxpayer will be required to reply to IRAS’ queries as per the due date stated in our letter. In the absence of any specific due date, the deadline is two months from the date of IRAS’ letter of queries.
- Review of Objection – IRAS will review and convey their decision in writing within six months from the date of receipt of the taxpayer’s last correspondence with complete information. For complex cases where more time is needed to review the tax issue under objection, IRAS will inform taxpayer the estimated time needed.
- Taxpayer’s Response to IRAS’ Decision – Taxpayer will be requested to reply in writing whether he/she agrees with IRAS’ decision on the disputed tax issue as per the due date stated in its letter. In the absence of a specific request on whether taxpayer agrees with IRAS’ position and/ or specific due date, taxpayer is required to reply within three months from the date of IRAS’ letter. Otherwise, the objection will be considered as resolved and closed.>To ensure closure of a protracted objection,
Notice of Refusal to Amend
IRAS will issue a notice of refusal to amend under the following conditions:
- Information requested by IRAS remains outstanding after two years from the date of receipt of the Notice of Objection.
- Taxpayer has failed to furnish a reply to IRAS’s decision on the tax issue under objection (i.e. no response from taxpayer on whether he/she agrees with IRAS’ decision on the disputed tax issue) within three months from the date of IRAS’ letter.
- Taxpayer’s agreement to IRAS’ decision is qualified with caveat (i.e. taxpayer states that he/she reserves the right to re-open the case in the event of a favourable decision/ ruling by the Income Tax Board of Review/ High Court/ Court of Appeal).
- IRAS is unable to reach an agreement with taxpayer on the tax issue under objection.
If you have any questions regarding the above, please contact me at firstname.lastname@example.org.