Payroll Tax Regulations

Payroll Tax Act

(Chapter 223, Section 11)

Rg 1

REVISED EDITION 1990

(25th March 1992)

[15th November 1973]

PART I

PRELIMINARY

Citation

1. These Regulations may be cited as the Payroll Tax Regulations.

Definitions

2. In these Regulations, unless the context otherwise requires —

“executor” means any executor, administrator or other person administering the estate of a deceased person;

“incapacitated person” means an infant or a mentally disordered person;

“person” includes an individual, a company, a body of persons and a partnership;

“records” includes books of accounts, payroll, receipts, salaries or wages books, attendance books or lists, or time books in whatever form they may be kept, bank accounts and other documents;

“return” means a return of payroll required under these Regulations;

“tax” means the payroll tax imposed by the Act.

PART II

RETURNS AND PAYMENT OF TAX, ETC

Return of payroll and payment of tax

3.—(1) Every employer liable to pay tax for any month shall —

(a)

within 14 days after the end of that month furnish a return of his payroll for that month to the Comptroller at the address specified on the return form:

Provided that the Comptroller may, in his discretion, extend the time for furnishing any return for such further period as appears to him to be reasonable in the circumstances; and

(b)

compute the amount of tax payable by him in accordance with section 5 of the Act and pay the amount to the Comptroller at the time of furnishing the return at such places as the Comptroller may direct.

(2) An employer who has furnished a return shall continue to furnish monthly returns even if his payroll decreases to less than $500 unless the Comptroller has by written notice exempted him from furnishing such returns either generally or in respect of a specified period.

Payroll register

4.—(1) Every employer liable to pay tax shall prepare and keep in safe custody a register containing in respect of every employee details of the employee’s full name, sex, age, address, identity card number, nature of employment, rate and amount of remuneration and the date of commencement and cessation of employment, and such other records as may be necessary to ascertain the tax payable by such employer.

(2) The Comptroller may from time to time require the keeping of such other records as appear to the Comptroller to be necessary to ascertain the payroll of, and the tax payable by, any employer.

Power to obtain information and call for returns

5.—(1) The Comptroller may by notice in writing require —

(a)	any person to furnish, within the time specified in the notice, any information that may be required by him for the purpose of inquiring into or ascertaining that person's or any other person’s liability under the Act;
(b)	any employer, within the time specified in the notice, to complete and deliver to the Comptroller any return specified therein;
(c)	any person to attend personally before the Comptroller and to produce for examination his payroll register and such other records as the Comptroller may consider necessary to ascertain the payroll of, and the tax payable by, that person or any other person.

Power to inspect

(2) The Comptroller, or any officer duly authorised by him, shall at all times have full and free access to all lands, buildings, places, books, documents and other papers for any of the purposes of the Act or these Regulations and may for any such purpose inspect, copy or make extracts from such books, documents or papers or take possession of any such books, documents or papers if in his opinion —

(a)	the inspection, copying or extraction thereof cannot reasonably be performed without taking possession thereof;
(b)	the books, documents or papers may be interfered with or destroyed unless possession thereof is taken; or
(c)	the books, documents or papers may be required as evidence in any proceeding instituted or commenced for any of the purposes of, or in connection with, the Act or these Regulations.

Presumption of authority and cognizance

6. A return, statement or form purporting to be furnished by any person shall be deemed to have been furnished by that person or by his authority unless the contrary is proved; and any person signing any such return, statement or form shall be deemed to be cognizant of all matters therein.

PART III

ASSESSMENT OF LIABILITY AND OBJECTION

Assessment of liability

7.—(1) Where the Comptroller is not satisfied with any return furnished by an employer he may reject the return and, to the best of his judgment, determine the amount of the payroll of that employer and make an assessment accordingly.

(2) Where an employer has not furnished a return and the Comptroller has reason to believe or suspect that the employer is liable to pay tax, the Comptroller may, to the best of his judgment, determine the amount of the payroll of that employer and make an assessment accordingly.

(3) Where an employer has furnished a return and it subsequently appears to the Comptroller that the return is not accurate or correct he may, to the best of his judgment, determine the amount of the payroll of that employer and make an assessment accordingly.

(4) No assessment shall be made under paragraph (2) or (3) more than 12 years after the end of the month to which the return or failure to furnish a return relates unless, in the opinion of the Comptroller, the inaccuracy in the return or the failure to furnish the return was attributable to fraud or wilful default.

(5) Where any tax is assessed by the Comptroller under this regulation, the tax shall be due and payable 14 days after the date of issue of the notice of assessment of the tax.

Notice of assessment

8.—(1) Where an assessment is made under regulation 7, the Comptroller shall cause to be served on the employer a notice of assessment stating the amount of the payroll, the tax payable by him, and the date upon which payment is due.

(2) Such notice shall be in such form as the Comptroller may determine.

Objection

9.—(1) If any employer disputes an assessment made under these Regulations, he may make an objection in writing and request the Comptroller to review and to revise the assessment made upon him.

(2) A notice of objection shall be lodged with the Comptroller within 14 days from the date of service of the notice of assessment and shall state precisely the grounds of objection to the assessment:

Provided that the Comptroller may, upon being satisfied that owing to absence, sickness or other reasonable cause the person disputing the assessment was prevented from objecting within that period, extend the period if it appears to the Comptroller to be reasonable in the circumstances.

(3) For the purpose of determining an objection, the Comptroller may exercise any of the powers conferred upon him by regulation 5 and may summon any person whom he considers is able to give evidence respecting the assessment to attend before him, and may examine any such person on oath or otherwise.

(4) In the event of any person who has objected to an assessment made upon him —

(a)	agreeing with the Comptroller as to the amount of his payroll, the assessment shall be amended accordingly;
(b)	failing to agree with the Comptroller as to the amount of his payroll, the Comptroller shall give him notice of refusal to amend the assessment;
(c)	agreeing with the Comptroller as to part only of the matters in dispute, the Comptroller shall amend the assessment to the extent of the matters agreed upon and shall give him notice of refusal to amend the revised assessment.

Appeal

10. Any person who is aggrieved by a notice of refusal to amend an assessment given by the Comptroller under regulation 9(4) may appeal to the Board of Review constituted under section 78 of the Income Tax Act [Cap. 134], and the provisions of Part XII of that Act shall apply, mutatis mutandis, to such an appeal as if it were an appeal under that Part of the Income Tax Act.

PART IV

PERSONS CHARGEABLE AND RECOVERY

Incapacitated persons

11.—(1) A receiver appointed by a court and a trustee, guardian, curator or committee having the direction, control or management of the affairs of an incapacitated person shall be answerable for all matters required by the Act or these Regulations to be done by that incapacitated person.

Non-resident employer

(2) An agent, attorney, manager, receiver or trustee having the direction, control or management of the affairs of a non-resident employer shall be answerable for all matters required by these Regulations to be done by that non-resident person.

Deceased employer

(3) Where an individual dies, then as respects any period either prior to his death or during the course of administration of his estate, all rights and duties which would have attached to him under the Act or these Regulations if he had not died shall pass to his executor and any tax due shall be payable out of the estate of that deceased person.

Company in liquidation

(4) Where a company is being wound up, the liquidator shall not distribute any of the assets to the shareholders without making provision for the payment in full of any tax which may be found payable by the company.

Recovery of tax from employers leaving Singapore

12.—(1) Where the Comptroller is of the opinion that any employer is about or likely to leave Singapore without paying the tax payable by him, he may issue a certificate containing particulars of the tax and a direction to the Commissioner of Police or the Controller of Immigration, or both, that the employer be prevented from leaving Singapore without paying the tax or furnishing security to the satisfaction of the Comptroller for payment thereof.

(2) Subject to the provisions of any order issued or made under any law relating to banishment or immigration, the Commissioner of Police or the Controller of Immigration, or both, as the case may be, shall thereupon take, or cause to be taken by any police officer or immigration officer, such measures as may be necessary to prevent the employer named in the direction from leaving Singapore until payment of the tax has been made or secured as aforesaid, including the use of such force as may be necessary and the detention of any passport, certificate of identity or travel document.

(3) At the time of issue of the certificate, the Comptroller shall issue to such employer a notification thereof by personal service or registered post; but the non-receipt thereof shall not invalidate any proceedings under this regulation.

(4) Payment of the tax to an officer in charge of a police station or to an immigration officer or production of a certificate signed by the Comptroller or a Deputy Comptroller stating that the tax has been paid or secured as aforesaid shall be sufficient authority for allowing such employer to leave Singapore.

(5) Any person who, knowing that a direction has been issued under this regulation for the prevention of his departure from Singapore, voluntarily leaves or attempts to leave Singapore without paying all tax assessed upon him or furnishing security to the satisfaction of the Comptroller for payment thereof shall be guilty of an offence and may be arrested, without warrant, by any police officer or immigration officer.

(6) No civil or criminal proceedings shall be instituted or maintained against the Government, the Commissioner of Police, the Controller of Immigration or any other police officer or immigration officer, in respect of anything lawfully done under the authority of this regulation.

Power to appoint agent

13.—(1) The Comptroller may, by notice in writing, if he thinks it necessary, declare any person to be the agent of an employer, and the person so declared the agent shall be the agent of the employer for the purposes of these Regulations, and may be required to pay any tax due from any moneys, including pensions, salary, wages or any other remuneration, which may be held by him for, or due by him, to the employer whose agent he has been declared to be, and in default of such payment the tax shall be recoverable from him in the manner provided for by regulation 15.

(2) For the purposes of this regulation, the Comptroller may require any person to give him information as to any moneys or other assets which may be held by him for, or of any moneys due by him to, an employer liable to tax under the Act.

(3) Where any person declared by the Comptroller to be the agent of an employer under paragraph (1) is aggrieved by such declaration he may, by notice in writing to the Comptroller within 14 days, or within such further time as the Comptroller may in his discretion allow, object to the declaration.

(4) The Comptroller shall examine the objection and may cancel, vary or confirm the declaration.

(5) Where the objector is aggrieved by the Comptroller’s decision upon his objection, he may appeal against the decision to the Board of Review constituted under section 78 of the Income Tax Act [Cap. 134], and the provisions of Part XII of that Act shall apply, mutatis mutandis, to such an appeal as if it were an appeal under that Part of the Income Tax Act.

PART V

COLLECTION, REPAYMENT AND RELIEF

Tax payable notwithstanding objection or appeal

14.—(1) Tax shall be paid within the time provided for in these Regulations notwithstanding any objection or appeal but the Comptroller may, in his discretion, extend the time within which payment is to be made.

(2) If any tax is not paid within the time specified in these Regulations or such further time as the Comptroller may allow, a penalty at the rate of 10% per annum of the amount outstanding shall be imposed from the expiration of such time or further time, as the case may be.

Suit for tax

15.—(1) The Comptroller may, in his official name, sue for any tax and penalty due from and payable by an employer and shall be entitled to all costs allowed by law against the person liable thereto.

(2) The Comptroller may appear personally or by counsel in any suit instituted under this regulation.

(3) In any such suit the production of a certificate signed by the Comptroller giving the name and address of the defendant and the amount of tax due by him shall be sufficient evidence of the amount so due and sufficient authority for the court to give judgment for that amount.

Penalty not a bar to recovery of tax

16. The institution of proceedings for or the imposition of a penalty, fine or term of imprisonment under the Act or these Regulations shall not relieve any employer from liability to pay any tax for which he is or may be liable.

Refund of tax overpaid

17.—(1) Subject to paragraph (2), where the Comptroller is satisfied that any person has paid tax in excess of the amount payable under the Act or these Regulations in respect of any month, the Comptroller shall —

(a)	allow the person to set off the amount paid in excess against the amount of tax payable by him in respect of any month after a certificate from the Comptroller certifying the amount paid in excess is received by him; or
(b)	refund to the person the amount paid in excess.

(2) No refund shall be made and no amount shall be set off under this regulation unless —

(a)	a written application for refund or set off, as the case may be, in the form prescribed by the Comptroller for this purpose is made by the person who claims to have paid tax in excess of the amount payable within 6 years after the end of the month in respect of which the tax has been paid in excess; and
(b)	the person furnishes such information as the Comptroller may require to determine the amount paid in excess.

(3) Where through death, incapacity, bankruptcy or other cause, a person entitled to make a claim under this regulation is unable to do so, his executor, trustee or other representative shall be entitled to have the excess refunded to him for the benefit of that person or his estate, as the case may be.

(4) The Comptroller shall certify any amount repayable under this regulation and shall cause repayment to be made forthwith.

Remission of tax

18. The Minister may remit, wholly or in part —

(a)	the tax payable by any person on the ground of poverty; and
(b)	the tax payable by any person where he considers it just and equitable to do so.