The Inland Revenue Authority of Singapore (IRAS) encourages all employers to join the Auto-Inclusion Scheme for Employment Income. It is a scheme where employers submit their employees’ income information to IRAS electronically.
The employment income information will be shown on the employees’ electronic tax return and automatically included in their income tax assessments.
Well if things go according to plan as above, all parties involved ie. employer, employee, IRAS and the mother Earth will be all happy.
But what happen when there has been an error or omission in the employer’s submission?
For any omission/error in the Form IR8A, the penalties for any tax understated are imposed on the employer for a failure to report.
However, penalties may also be separately imposed on the employee for failure to report in his personal tax return. You can’t argue with IRAS that the mistake was committed by your employer.
Remember you are the person who finally submit the return!