27 June 2011
IRAS has recognised that most companies in liquidation receive little or no income and that the requirement to file an Account of Receipts and Payments with IRAS every half yearly throughout the process of liquidation may not be cost effective for these companies. The high volume of the Account of Receipts and Payments received by IRAS has also delayed their response to requests for tax clearance from liquidators.
Thus with effect from 1 July 2011, the filing procedure of Receipts and Payments by liquidators has been streamlined, as follows:
- For a company in liquidation that has receipts, the liquidator will have to file a Declaration of Receipts and Payment (With Receipts) with IRAS on a yearly basis. The last declaration will have to be filed anytime within 6 months before the Final Meeting (the Final Meeting is the date of the court order for dissolution for companies in compulsory liquidation).
- For a company in liquidation that has no receipts, the liquidator will have to file a Declaration of Receipts and Payments (With No Receipts) with IRAS within 6 months before the Final Meeting or once every 4 years, whichever is earlier.
The above Streamlined Filing Procedure will apply to all existing companies under liquidation as at 1 July 2011 and companies that commence liquidation on or after 1 July 2011. Companies under liquidation which will hold their Final Meeting within 6 months from 1 July 2011 will not need to adopt the Streamlined Filing Procedure.
Prior to 1 July 2011, the liquidator will have to file the Account of Receipts and Payments with IRAS every half yearly; and the liquidator’s Final Accounts relating to the Final Meeting immediately after the Final Meeting.
Duties of liquidators with regard to the tax matters of companies in liquidation are set out in section 59(2) of the Singapore Income Tax Act.
For full details, please refer to http://iras.gov.sg/irasHome/page04_ektid612.aspx