Part of the striking off process of a Singapore company involves clearing all outstanding taxes and tax obligations to the Inland Revenue Authority of Singapore (IRAS). If these are not cleared, IRAS may object to the application for striking off.
The company in question should ensure the following:
- All outstanding tax returns (Form C-S/C) are submitted to IRAS.
- The accounts and tax computations, where IRAS has not issued a Corporate Income Tax Return are submitted up to the date of the cessation of business.
- All outstanding tax matters have been settled with IRAS.
- All assessments are finalised and paid.
- GST registration is cancelled and there are no outstanding GST matters (if applicable).
The bank account should not be closed although the monies should be cleared if there is a tax credit owing to the company. If the bank account is closed, IRAS will not be able to pay over the tax credit to the company and instead, the tax credit will be paid to the Insolvency and Public Trustee’s Office (IPTO). The shareholders can then approach IPTO if they wish to claim this tax credit.
The officers of the company have to ensure that all documents of the company be retained for a period of at least five years after the striking off date.
If the company has been dormant since the date of incorporation or from the submission of the last tax return and has outstanding income tax returns that were issued to it during the dormant period, it should complete the Application of Waiver of Income Tax Return (Form C/ Form C-S) Submission by a Dormant Company. This matter should be cleared before proceeding to strike off the company.
Do note that IRAS will not issue any document to clear the company of all its tax obligations for the purpose of striking off.
When in doubt, seek legal advice or consult an experienced ACRA Filing Agent.
The editorial team at Singapore Secretary Services
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