Offences and penalties
Read the PDF edition (2 pages)
The Income Tax Act grades its offences by culpability. Section 94 is the general penalty for failing to file or to comply, with a fine up to S$ 5,000 and a penalty of double the tax. Section 95 punishes an incorrect return made without reasonable excuse or through negligence with a penalty of up to 200 per cent of the tax undercharged, a fine up to S$ 5,000 and up to three years' imprisonment. Section 96 punishes wilful evasion with a penalty of 300 per cent of the tax undercharged, a fine up to S$ 10,000 and up to three years' imprisonment. Section 96A punishes serious fraudulent tax evasion, which includes falsified records and fictitious entries, with a penalty of 400 per cent, a fine up to S$ 50,000 and up to five years' imprisonment.1 The GST Act contains the parallel offences in sections 59 to 63.2
In practice IRAS resolves the great majority of cases by composition under section 102, in which the Comptroller offers to compound the offence for a sum and the taxpayer pays the tax, the penalty and the composition amount without prosecution. Prosecution is reserved for serious or repeated cases and for cases in which IRAS wishes to make an example.3 The published prosecutions of recent years include several involving undeclared trading and GST fraud but, to my knowledge, no reported prosecution for undeclared crypto trading as at 30 June 2026. The absence reflects the information gap that CARF will close.
| Provision | Conduct | Penalty on tax | Fine | Imprisonment |
|---|---|---|---|---|
| s. 94 | Failure to file or comply | Up to 200 % | Up to S$ 5,000 | Up to 6 months in default |
| s. 95 | Incorrect return, negligence or no reasonable excuse | Up to 200 % | Up to S$ 5,000 | Up to 3 years |
| s. 96 | Wilful evasion | 300 % | Up to S$ 10,000 | Up to 3 years |
| s. 96A | Serious fraudulent evasion | 400 % | Up to S$ 50,000 | Up to 5 years |
| GST Act s. 62 | Wilful evasion of GST | 300 % | Up to S$ 10,000 | Up to 7 years |
| GST Act s. 63 | Serious fraudulent GST evasion | 400 % | Up to S$ 50,000 | Up to 7 years |
Notes
- Income Tax Act 1947, s. 94 (general penalties), s. 95 (penalty for incorrect return or information), s. 96 (tax evasion and wilful action to obtain PIC bonus) and s. 96A (serious fraudulent tax evasion). ↩
- Goods and Services Tax Act 1993 (2020 Rev. Ed.), ss. 59–63 (general penalties, incorrect returns, evasion and serious fraudulent evasion). ↩
- Income Tax Act 1947, s. 102 (compounding of offences by the Comptroller); IRAS, annual reports and media releases on prosecutions and compositions, 2022–2025. ↩
For general information only. This article does not constitute legal or tax advice, does not replace advice on an individual case and creates no lawyer-client relationship. It reflects the legal position as of October 2026.