Why does IRAS make ‘provisional’ tax deductions?

While doing a check of my bank account, I realised deductions were made this month by the Inland Revenue Authority of Singapore (IRAS) under its GIRO scheme. The sum deducted was the same as my monthly instalments for the Year of Assessment 2012.

Due to these deductions (which would presumably continue until the 2013 assessment is completed next month or July), I am now in a net credit position with the IRAS. This also happened in 2011 and last year, but I did not notice the deductions then.

This policy seems questionable. IRAS has also made no interest payments on these “advance payments” made or informed me of these deductions.

FROM HUANG WENSHAN

Source – Today : 27 May 2013

 

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