Tax Evasion In Singapore Essay

Prima facie, low tax evasion in Singapore arises from ideological domination to adhere to the state’s rules. However a country so unhappy with quality of life, politics, increasingly, and individual economic status cannot comply so willingly to the state. Taxpayers should be finding loopholes in the system to increase socioeconomic happiness. However, they are not doing so despite a minority who find ways to evade taxes. The Inland Revenue Authority of Singapore (IRAS), the statutory board responsible for tax collection, defines tax evasion as knowingly misrepresenting assessable income and misusing tax reliefs. Though the number of evaders are small, their arrears amount to $387 million in tax and penalties. I will argue that compliance, or

Compliance rates are high, with only 25% of taxpayers filing their tax returns late for Year of Assessment 2014 and minimal arrears of 0.77% for FY2013/4. These figures have been improving steadily over the years. Thus, it is inferred compliance is becoming a norm. Tilly argues that taxpayers who have been socialised to obey the state associate meaning to their tax monies. Hence, they surveil others and ensure no free rider problem. I believe that Tilly’s argument can be applied to

Singaporeans have much reason to comply because the government uses tax responsibly and announces how it is used in the annual budget, unlike in countries like Malaysia or Indonesia, where corruption is strife and tax monies are spent frivolously. Furthermore tax fraud in Singapore is frequently committed among corporations and small and medium enterprises instead of individuals. Businesses are concerned with reaping higher profits by misusing tax claims and declaring false assessable incomes. Additionally, some employ tax agents because they want to file their tax honestly and avoid state punishment which will hurt them further. Regardless of tax type, everyone operates within a capitalist system and surrenders tax monies because it aligns with Hobbes’ state of