Record high tax collection of $41.6b last year as arrears fall to all-time low

The taxman had a bumper year in the last financial year, adding a record amount to the government's coffers as tax arrears fell to an all-time low. -- PHOTO: ST FILE
The taxman had a bumper year in the last financial year, adding a record amount to the government's coffers as tax arrears fell to an all-time low. -- PHOTO: ST FILE

SINGAPORE - The taxman had a bumper year in the last financial year, adding a record amount to the government's coffers as tax arrears fell to an all-time low.

Tax revenue collected for the 12 months to March 31 stood at $41.6 billion, according to the Inland Revenue Authority of Singapore (Iras).

The amount is 0.5 per cent higher than the $41.4 billion collected in the previous financial year.

Taxpayers have also become more compliant, paying up on time and filing their returns punctually. Tax arrears fell to a record low of 0.77 per cent of the total net tax assessed.

Iras said in its annual report out on Monday that on-time tax return filing rates have improved across the board.

The on-time tax filing rate improved to 95.6 per cent for individuals, up from 94 per cent previously, while 82.5 per cent of companies filed promptly, up from 80.9 per cent previously.

Iras said that its continual efforts to make things simple and convenient for taxpayers have helped raise the voluntary compliance level.

It expanded the no-filing service to 1.23 million taxpayers, including 15,000 first-time taxpayers, for the 2014 tax filing season.

It is further simplifying tax matters for small businesses by allowing eligible small businesses to do away with physical invoices and receipts with effect from the 2015 year of assessment.

 

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