It is common for taxpayers to unintentionally make errors when filing their tax returns, often due to a lack of awareness regarding recent changes in tax laws and regulations. If you are looking for the ideal opportunity to rectify
such errors, the time is now. Keep reading to discover how SVDP can assist you in resolving these issues with zero penalties!
What is the SVDP 2.0 all about?
The
SVDP is an initiative by the Inland Revenue Board (IRB) to allow taxpayers to voluntarily disclose any mistakes or omissions made in the past. It encourages taxpayers who have underdeclared income, overclaimed expenses, capital allowance, or incentive to rectify these errors without being penalised, as well as encouraging all taxpayers to pay taxes within the specified timeframe.
Additionally, the IRB also clarified that they would accept any information voluntarily disclosed under SVDP in good faith, and no audit or investigation will be undertaken in the future for the year of assessment (YA) in which the voluntary disclosure is made. Therefore, those taxpayers who qualified for it should seize the opportunity to participate in the program to
ensure compliance.
The SVDP program is open to all categories of taxpayers (including non-resident taxpayers), except for the employer file category. The eligible taxpayers are as follows:
- New taxpayers who have never declared income to the IRB but have commenced a business or have received income (income declaration is for the YA 2022 and its preceding YAs);
- Taxpayers who have previously declared income to IRB and still have under-declared or undeclared income (income declaration is for the YA 2021 and its preceding YAs);
- Taxpayers who have not declared
disposal of assets (asset disposal declaration is for the YA 2022 and its preceding YAs);
- Duty payer who fails to stamp documents or agreements within the stipulated stamping period (instruments executed on or before 1 May 2023).
However, it's important to note that SVDP 2.0 does not apply to taxpayers who fall under the following circumstances, where:
- the YAs where the IRB has commenced a tax audit or investigation;
- Non-taxable, reduced assessment or tax repayment cases, except for Transfer Pricing cases; or
- Those taxpayers that currently under criminal investigation or prosecution proceedings initiated by IRB.
Apart from the above, the IRB has also mentioned in a media release that, as of 31 January 2024, it had received 64,748 voluntary disclosures from taxpayers. If you
encounter any of the aforementioned issues, it is highly advisable to seize this opportunity and participate in the program before the deadline on 31 May 2024.
