With the implementation of Form C-S, the accuracy of hardcopy tax returns improved by 25%. 69.8% of our target group of small companies also filed Form C-S in the first year of implementation.
For Year of Assessment (“YA”) 2012, corporate tax return filing packages were sent to 157,699 companies. Of these, 111,844 (70.9%) companies were sent Form C-S packages (either paper Form C-S or invitation letter to e-File Form C-S).
71,834 or 64.23% of the target group of corporate taxpayers used Form C-S to submit their YA 2012 returns, while 14,877 or 35.3% of the e-Filing target group of 42,105 filed YA 2012 Form C-S electronically.
Impact and benefits for small companies
The compliance costs for small companies have been reduced and voluntary compliance has improved. This is in line with IRAS corporate goals in the following ways:
i. The simpler design is easier to complete; it is anticipated that it would only take half the amount of time to complete Form C-S compared with the Form C.
ii. Companies can choose to e-file Form C-S or use the physical form.
iii. A host of benefits that make filing easier are available to companies should they choose to e-file. These are:
a) iHelp facility that guides companies as they e-file;
b) in-built formula to compute the relevant fields, so that companies need not compute those figures themselves;
c) auto-computation of estimated tax payable;
d) save draft function, that allows companies to complete the Form at their convenience; and
e) instant acknowledgement, so that companies know if their filing has been successful.
Examples of compliments which IRAS received from companies:
“The Form C-S e-Filing system is very clear, easy to understand and used by personnel from small corporations and tax practitioners who are working for small corporations. It has a user-friendly function in saving as draft in the system up to the filing due date. Good innovative job done by the IRAS team.”
Mr Hu Cheng Hong, Director, Handy Business Consultants Pte Ltd
“A user-friendly and convenient system that makes filing easier. I would encourage eligible companies to e-file their Form C-S – you will be pleased with how much time you can save.”
Ms Serena Toh, Sole-proprietor, Serena Toh Consultancy
“Form C-S is indeed an easy, fast and efficient way to file our company’s income tax. When tax filing is simple, taxpayer is willing to file as soon as possible. Thank you.”
Mr Peter Lu, Director, BKS Pte Ltd
“Form C-S for small companies to report their income is a great initiative to help enterprises ease their administration, improve work productivity and focus on developing their core businesses. The initiative is beneficial in promoting entrepreneurship and facilitating the growth of SMEs.”
Ms Nancy Lim
President, Spa Association Singapore, CEO, Singapore SPA Institute Pte Ltd
The media has also lauded Form C-S
Mediacorp Channel 8 news bulletin on 06/11/2012 – In this news feature, Form C-S was cited as a good example of how the government is simplifying business procedures for SMEs. The news highlighted the positive e-Filing experience of a corporate taxpayer and the e- Filing benefits, which include convenience and the iHelp facility which makes it easier for companies to e-File their tax returns on their own.
Benefits to IRAS
As edit checks are built into the e-filing system, less casting/transposition errors will be made. IRAS’ officers need not review such cases manually to rectify the errors.
E-Filing allows IRAS to free up resources required to data-capture paper forms. Frontline contacts are also reduced as companies find it easier to complete Form C-S without requiring assistance from officers. The collaborative design of Form C-S also enabled IRAS to forge closer relationships with stakeholders, namely the associations, taxpayers and tax agents.
The Form C-S allows small companies to enjoy the benefits of easy filing, which reduces their time and effort which can be better used to boost their productivity and revenues. IRAS continuously looks at programmes to reach out and bring more companies on board this initiative.
The success of this initiative can also be attributed to the open consultative process undertaken to involve the public in the design of Form C-S so as to meet their needs.
The table below shows a comparison of Form C-S take-up rate for Year of Assessment 2012 vs. 2013:
Year of Assessment 2012
(as at 31 Dec 2012) Year of Assessment 2013
(as at 15 Dec 2013)
No. of paper Form C-S filed 71,834 80,000 (estimated)
No. Form C-S e-filed 14,877 23,721
Total base 157,699 174,102
% of Form C-S paper-filed 45.55% 45.95%
% of Form C-S e-filed 9.43% 13.62%
The number of companies filing Form C-S is encouraging. With the introduction of Form C-S for YA2012, there is an overall reduction of 2.3% in the number of cases that required manual review by officers for YA2012 as compared to YA2011.
Riding on the success of the e-filing of the Form C-S, IRAS is expanding the e-filing group by inviting all newly incorporated companies to e-file with effect from Year of Assessment 2014. IRAS will also be introducing e-filing of Form C in 2015 for the bigger companies.