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tax clearance question

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palaboy
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tax clearance question

Postby palaboy » Fri, 12 Jun 2015 9:58 pm

Hi, I used to work in Singapore for 5 years. Last April, I was retrenched in my work and was removed from my company immediately without any prior notice. By the following day, I received my final pay from my company without seeing a final deduction from my tax so I assumed that the company will take care of my tax clearance already because as stated in the iras website, your employer will file the tax clearance on your behalf. I stayed for a month in SIngapore trying to look for a new work but I just decided to move back from my country.

It has been 3 months already, I noticed that IRAS is still getting money from my GIRO account that I set-up with them so I immediately removed the GIRO account of IRAS on my bank account.

Now, I'm thinking if my company filed for tax clearance on my behalf? Why am I still being deducted for my tax? Should I contact my previous employer or will they settle this issue with them since I'm not with them for 3 months already? or did my employer settled my tax clearance and i'm just being doubled tax? Did I also make the right decision to remove the GIRO account for IRAS in bank account since I'm not working in Singapore already ?

Your inputs will be good help for me. Thanks in advance.

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sundaymorningstaple
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Re: tax clearance question

Postby sundaymorningstaple » Fri, 12 Jun 2015 10:39 pm

Your employer is only a tax agent for IRAS. The most that will happen to them is that they could incur a $1000 fine for failure to withhold your taxes. At the end of the day, however, the tax liability is yours. You could have logged into your IRAS account to see what the tax assessment amount was and easily figured out how much they would be deducting if they employer didn't withhold the tax liability up front and pay it for you. Therefore you should have inquired with IRAS before you left as you knew your employer did not withhold anything for Income Taxes.

I would seriously contact IRAS to find out if you have any further tax liability and if so, pay it.

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Re: RE: tax clearance question

Postby ecureilx » Fri, 12 Jun 2015 10:43 pm

palaboy wrote:

Your inputs will be good help for me. Thanks in advance.

If you have sing pass, login to IRAS and check if your employer cleared your tax

The Giro should be for 2013 tax, assessed in 2014.

IRAS has been sending 2014 assessment only recently.

When they sent the assessment IRAS would have sent the breakdown of deduction. They are never known to over charge on GIRO

Non payment of tax is a serious offense and do ask somebody to go to IRAS and check on your behalf

And also ask the employer if they cleared IR21, failing which, while they may be subject to penalty you too will be charged.

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Re: RE: Re: tax clearance question

Postby ecureilx » Fri, 12 Jun 2015 10:46 pm

sundaymorningstaple wrote:I would seriously contact IRAS to find out if you have any further tax liability and if so, pay it.


+1

palaboy
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Re: tax clearance question

Postby palaboy » Fri, 12 Jun 2015 10:46 pm

sundaymorningstaple wrote:Your employer is only a tax agent for IRAS. The most that will happen to them is that they could incur a $1000 fine for failure to withhold your taxes. At the end of the day, however, the tax liability is yours. You could have logged into your IRAS account to see what the tax assessment amount was and easily figured out how much they would be deducting if they employer didn't withhold the tax liability up front and pay it for you. Therefore you should have inquired with IRAS before you left as you knew your employer did not withhold anything for Income Taxes.

I would seriously contact IRAS to find out if you have any further tax liability and if so, pay it.



I tried to log-in to my IRAS account but my singpass is disabled already.

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Re: RE: tax clearance question

Postby palaboy » Fri, 12 Jun 2015 10:53 pm

ecureilx wrote:
palaboy wrote:

Your inputs will be good help for me. Thanks in advance.

If you have sing pass, login to IRAS and check if your employer cleared your tax

The Giro should be for 2013 tax, assessed in 2014.

IRAS has been sending 2014 assessment only recently.

When they sent the assessment IRAS would have sent the breakdown of deduction. They are never known to over charge on GIRO

Non payment of tax is a serious offense and do ask somebody to go to IRAS and check on your behalf

And also ask the employer if they cleared IR21, failing which, while they may be subject to penalty you too will be charged.



Should I contact my previous employer instead or call IRAS directly? I just don't want to by-pass my previous employer since I have a good relationship with them.

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Re: RE: tax clearance question

Postby sundaymorningstaple » Fri, 12 Jun 2015 11:18 pm

palaboy wrote:Should I contact my previous employer instead or call IRAS directly? I just don't want to by-pass my previous employer since I have a good relationship with them.


Most definitely call them (IRAS) to do two things. Enquire as to you current tax liability status (as you cancelled the GIRO Pmts without knowing what you were paying for - more than likely it was your 2013 taxes. Secondly, as if the IR-21 Tax Clearance was filed by the employer and what your final tax liability for 2015 is. If they didn't file the IR-21 it will be apparent then. If they didn't, you will need to file the tax return yourself (ask them the proper procedure - they WILL happily assist you and are known to be helpful and reasonable).

Last April, I was retrenched in my work and was removed from my company immediately without any prior notice. By the following day, I received my final pay from my company


It doesn't sound like you were on too good of a relationship with your former employer to me. :-k

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Re: RE: tax clearance question

Postby palaboy » Fri, 12 Jun 2015 11:21 pm

sundaymorningstaple wrote:
palaboy wrote:Should I contact my previous employer instead or call IRAS directly? I just don't want to by-pass my previous employer since I have a good relationship with them.


Most definitely call them (IRAS) to do two things. Enquire as to you current tax liability status (as you cancelled the GIRO Pmts without knowing what you were paying for - more than likely it was your 2013 taxes. Secondly, as if the IR-21 Tax Clearance was filed by the employer and what your final tax liability for 2015 is. If they didn't file the IR-21 it will be apparent then. If they didn't, you will need to file the tax return yourself (ask them the proper procedure - they WILL happily assist you and are known to be helpful and reasonable).

Last April, I was retrenched in my work and was removed from my company immediately without any prior notice. By the following day, I received my final pay from my company


It doesn't sound like you were on too good of a relationship with your former employer to me. :-k


Nah!! lol! It was just the sudden fall of oil price seriously affected our company. From 100 per barrel to 40ish per barrel. and many of us were affected.

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Re: tax clearance question

Postby sundaymorningstaple » Sat, 13 Jun 2015 12:07 am

Then pick up the phone and as them if they filed the IR-21 for you.

Sadly, we can only use the written word on the forum and if you don't use emoticons, etc. The nuances are lost and we have to take at face value what one writes.


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