I did not work for half a year last year. To my surprise, I received a letter with a Giro instalment deduction plan for income tax. My previous employer filed my income tax on time, which Iras verified via a phone call on Tuesday.

I asked the Iras customer service officer why I had to pay income tax even though my income is low and I did not work for half a year last year.

The officer replied that Iras computes my income tax based on the previous year's records, that is, income earned in year 2006. I am baffled. If that is so, why should we file our returns on time each year when Iras uses older records for its computations?

Moreover, the letter outlining my Giro instalment deduction plan was dated March 31, and I received it only two weeks later.

I asked if the Giro deduction plan would proceed, even though I am not liable for any tax this year. The officer replied that it was too late to stop the Giro deductions, which will start next month. Iras will still make a Giro deduction next month and then stop further deductions. The May deduction will then be refunded to me.

Such a procedure defeats the purpose of sending out the Giro deduction plan letter before deductions start as we are unable to stop any incorrect deduction.

Joanne Khoo (Mdm)