What are the key performance indices for IRAS? I will present its KPIs using the analogy of a company’s financial statement.

  1. The topline has grown by 11%. Total tax revenue collected for FY05-06 is $19.9bio. This is about $2bio more than FY04-05. This upward trend has been apparent over the last 5 years.
  2. Its cost of sales ie. the cost to collect a $1 tax revenue, is 1 cent.
  3. IRAS’s revenue is now about 70% of the Group’s (ie. Government’s) total operating revenue of $28bio. This is higher than last two financial years’ average of 65%.
  4. Sectoral performance review of its topline. IRAS received $7.3bio (37%) from corporate tax, $4.3bio (22%) from income tax, $3.8bio (20%) from GST and last $1.8bio (9%) from property tax.
  5. Other operating income ie. IRAS’s collection of fines and penalties. The amount of penalties collected from GST violations amounted to $76.2mio (a drastic decline of 35%). The amoun of penalties collected from income tax violations amount to $61.4mio (an even bigger decline of 46%).
  6. IRAS’s online business is not going as plan. What online business? IRAS wishes to encourage more e-filings. The no. of e-filers among individuals declined to 785,000 from 885,000 in FY04-05 despite an increase in total no. of taxpayers from 1.3 people to 1.5 people.
  7. IRAS’s bottomline ie. operating surplus of $40mio is a significant 93% improvement over the previous year.

Recommendation – This company is a strong buy with significant growth expected in most sectors that it is in. All KPI measures indicate the company is more than ready for that growth with a small black mark noted on its “online business”.

Are you earning >$1million income last year?

If you did, you are one of the 1,738 who earned more than a million dollars last year out of a total 1.5 million tax payers. Then sincere congratulation to you is in order from the masses out there.

The bad news is that if you are earning exactly $1,000,001, I am sorry you do look quite bad in comparison to most of the other 1,737. Why? These 1,737 people earned about $3.5billion (minus a million from u) ie. averaging $2mio per person.

So you have to work harder!

All in all, Singapore should say thank you to 1,738 of you for paying about $500mio in income taxes (albeit only about 3% of total tax revenue).

From the sour grape here, please help me to join this real Million Dollar Club.