Not only is this the law, if the employer doesn't and doesn't file the IR-21 (Tax clearance) they are also liable for a fine of 1000 per instance, as well as having to eat the tax liability if they let you go. Signing a letter of undertaking will have no bite with IRAS.Primrose Hill wrote:I am just trying to find out from other fellow members here- on the withholding of the final month salary.
So, husband has resigned from his company, going to work for someone else. His company asked him to sign an undertaking with his existing company that he will pay all his taxes.
Has this happen to anyone here? Is this the norm? It is something that I have never come across. Surely, my tax obligations is between myself and IRAS not between myself and employer. Employer mainly provides the numbers to IRAS, IRAS computes etc etc and then sends me a bill which I will then choose to pay annually or via direct debit/GIRO.
IRAS states "may" not must.
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