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Tax clearance matter

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sundaymorningstaple
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Re: Tax clearance matter

Postby sundaymorningstaple » Thu, 09 Apr 2015 10:21 pm

Depends on whether or not they are on the auto-inclusion scheme. They may not get into trouble assuming you have IR8As from both employers. If you didn't get a tax form in the mail or a no need to file letter from IRAS then you will need to go to IRAS on Newton Road and get the proper tax forms to fill out. I've not checked to see if you can download them online or not. However if you file with the IR8A from only one then you might have some problems.

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Re: Tax clearance matter

Postby ecureilx » Thu, 09 Apr 2015 11:15 pm

sundaymorningstaple wrote:Depends on whether or not they are on the auto-inclusion scheme. They may not get into trouble assuming you have IR8As from both employers. If you didn't get a tax form in the mail or a no need to file letter from IRAS then you will need to go to IRAS on Newton Road and get the proper tax forms to fill out. I've not checked to see if you can download them online or not. However if you file with the IR8A from only one then you might have some problems.

Once I worked for a company on auto.inclusion, and when I left they know I am joining another company and didn't file an IR21 (I thought) they just asked me to sign an undertaking that I will settle my tax dues and .....when I went to efile while at the next employer the previous employer's salary and benefits etc all appeared automatically...

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Re: Tax clearance matter

Postby sundaymorningstaple » Fri, 10 Apr 2015 8:52 am

That's good to know. And I believe that may answer the OP's question as well. Provided he's signed the form, but I believe it doesn't have to be lodged but just kept by the employer should a question arise. Good poop! All my staff leaving usually leave involuntary like due to quota crap so I don't know if they have found another position or not when they leave.

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Re: Tax clearance matter

Postby ecureilx » Fri, 10 Apr 2015 11:54 am

sundaymorningstaple wrote:That's good to know. And I believe that may answer the OP's question as well. Provided he's signed the form, but I believe it doesn't have to be lodged but just kept by the employer should a question arise. Good poop! All my staff leaving usually leave involuntary like due to quota crap so I don't know if they have found another position or not when they leave.

Safest option of course is to file IR21 and give a copy to the employee ...

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Re: Tax clearance matter

Postby sundaymorningstaple » Fri, 10 Apr 2015 12:09 pm

No need to give a copy of the IR-21 to the employee. When the employer files it, both the employer, as the tax agent for IRAS and the employee will get the notification of either taxes due or "release any retained funds belonging to the employee". Of course, what usually happens is the employer gets their copy and duly pays the taxes and deducts same from balance of salaries due to the employee but the employee may have moved prior to the IR8A having been filed and neglected to inform both the employer and ICA therefore the mail doesn't get delivered to the employee. However, we'll give them a copy if the ask for it.

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Re: Tax clearance matter

Postby tiryns12345 » Fri, 10 Apr 2015 5:59 pm

so are you saying that if I don't file my ir8a, my ex-employer would be responsible for paying my taxes? because they wouldn't be able to deduct my salaries as I have left?

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Re: Tax clearance matter

Postby sundaymorningstaple » Fri, 10 Apr 2015 6:13 pm

No, you are still responsible for your taxes. The are only being used as a tax agent and are supposed to make payment for your taxes from you final salary. The can get fined up to $1000 for not filing the IR8A but you can still be considered a tax defaulter as at the end of the day it YOUR tax liability. You do a runner, and you've canned your chances of ever working here again. If they don't report you income, you are still responsible, at the end of the day to ensure that your income is reported and the taxes paid, otherwise you could be up for tax fraud. For your on sake, don't play-play with the IRAS.

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Re: Tax clearance matter

Postby ecureilx » Fri, 10 Apr 2015 9:10 pm

tiryns12345 wrote:so are you saying that if I don't file my ir8a, my ex-employer would be responsible for paying my taxes? because they wouldn't be able to deduct my salaries as I have left?

Adding on to SmS, you can use your above argument ... if you have no plans to ever set foot in Singapore.. even on transit ..

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Re: Tax clearance matter

Postby tiryns12345 » Sat, 11 Apr 2015 9:45 am

thanks for your help - and yes of course i was always going to pay my taxes, just wanted to understand the ins and outs of the system here because when i was overseas, it was all withheld so didn't have to think about this

cheers


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