The income tax appeal process in Singapore starts with a mandatory initial objection lodged against a Notice of Assessment (NOA) issued by Inland Revenue Authority of Singapore (IRAS). This applies when a taxpayer believes that the tax assessed was incorrectly computed or that certain expenses were not given their due deduction. If a resolution cannot be reached with the Comptroller of Income Tax (CIT) at this stage, the matter may progress to formal litigation through the filing of a Notice of Appeal to the Income Tax Board of Review (ITBR). 

The ITBR’s decision is final where there is no question about the interpretation of the law. However, either party may appeal to the General Division of the High Court against the ITBR decision if there is an issue involving a question of law or a question of mixed law and fact.

 

Overview of the Objection an Appeal Process

The following stages are involved in an Objection and Appeal process:

 

  Objection

  • A valid objection is considered filed if it is lodged within 30 days (for individuals) or two months (for companies) from the date of issue of the NOA.  
  • Precise grounds of objection, with complete information, must be stated, accompanied by supporting schedules (if applicable) for the objection to be considered valid.
  • IRAS strongly encourages filing of the Notice of Objection via the “Revise/Object to Assessment” digital service in myTax Portal. However, you can still file an objection letter.

 

  Review

  • The CIT reviews the information provided by taxpayer and conveys his decision generally within six months. Further questions may also be raised at this stage.
  • When the CIT agrees with the taxpayer’s position, the assessment will be revised. Otherwise, the CIT will inform the taxpayer on his decision. If taxpayer accepts the CIT’s decision, the assessment will be regarded as final and conclusive.
  • If taxpayer disagrees to the CIT’s tax adjustments and decision, a response must be provided within three months. If taxpayer fails to respond within three months, the objection is considered resolved and closed, followed by the issuance of a revised NOA, if appropriate.

 

  Litigation

  • If a resolution cannot be reached with taxpayer following the lodgement of an objection, the CIT may proceed to issue a Notice of Refusal to Amend (NRA), an indication that the CIT will not amend the assessment further. Once the NRA is issued, taxpayer has the option to either accept the CIT’s decision on the item(s) under objection and regard the NOA issued as final and conclusive or file a Notice of Appeal to ITBR within 30 days from the date of issue of the NRA. The submission to ITBR should include the grounds of appeal, supporting documents and the prescribed filing fee.
  • The decision of the ITBR is final if there is no question about the interpretation of the law.
  • Either party may however appeal to the General Division of the High Court against the ITBR decision if there is a question of law or a question of mixed law and fact, and the disputed tax exceeds $200.
  • A further right of appeal exists in respect of decisions of the General Division of the High Court. This further layer of appeal is to the Appellate Division of the High Court, and if certain conditions are met, the appeal may be heard by the Court of Appeal.

 

  Finalisation

  • If the final Court judgement is in favour of the CIT, the NOA issued to taxpayer previously is treated as final and conclusive. On the other hand, if the final Court judgement is in taxpayer’s favour, the CIT will need to revise the NOA he has previously issued. 

 

Impact on Cash Flow and Financial Planning

The statutory due date for the payment of tax assessed is within a month from the date the NOA is issued. This is notwithstanding that taxpayer does not agree to the tax assessed and an objection has been lodged to the assessment raised and the case is pending resolution by the CIT. A tax appeal therefore can significantly affect the cash flow and financial planning of a business since the tax assessed must be paid upfront in full.

While IRAS may allow payment of the tax assessed by instalments, this is assessed case-by-case based on the taxpayer’s financial position and the circumstances surrounding the appeal.

If the tax under dispute is significant and must be paid upfront, it may affect business operation liquidity, investment decision and the ability to pay your creditors. You may need to adjust your financial forecasts to reflect a range of possible outcomes.  

The costs involved in going through an appeal process can be significant. Professional fees (i.e. tax advisors or lawyer’s charges) as well as internal costs, such as the involvement of administrative resources to manage and respond to issues raised by IRAS, will be incurred throughout the proceedings. If the appeal proves to be unsuccessful, taxpayer may also be liable for interest and penalties, in addition to the tax paid, and this could further impact the profitability of your business. These financial implications should be factored in your financial forecasts if there is a significant appeal ongoing with IRAS.

Another factor to consider is the time required to resolve an appeal as the objection process can take several months. If the case is escalated to the ITBR, it may take one to two years, or even longer, to resolve. Prolonged uncertainty could delay business strategic decisions, capital expenditure or expansion plans.

In short, you should approach a tax appeal with a comprehensive financial strategy that anticipates the potential cash impact, allocates resources for legal and advisory support and provides flexibility in financial planning to manage a range of possible outcomes.

 

The Avoidance of Common Mistakes

Many tax appeals fail not because the underlying case is weak, but because of avoidable procedural or evidential missteps. One common mistake is missing the statutory deadlines to lodge an objection or appeal. Unless there are exceptional circumstances and the CIT grants an extension, late objections or appeal filings are generally rejected without consideration.

Another frequent error is submitting a vague or general statement without specifying the precise grounds of your objection or disagreement. Without clear details and the relevant context, the objection may be deemed invalid. A well-prepared objection will state the relevant year(s) of assessment, describe the specific item(s) under dispute, indicate the amount(s) involved and explain the reasons why a deduction, allowance or relief should be allowed or why the income should not be taxed.

Equally problematic is the failure to provide adequate supporting documentation. Some taxpayers also overlook the pay-first rule, leading to cash flow difficulties when they are required to pay the assessed tax upfront while the dispute is on-going. Finally, businesses sometimes fail to account for additional penalties and interest that may accrue if the appeal is unsuccessful. This further compounds the financial impact.

 

Practical Tips in Support of a Good Tax Appeal

A well-prepared tax appeal begins long before the NOA is issued. Maintaining a thorough and organised documentation can make a significant difference when supporting your position. Engaging an experienced tax professional early in the process could help frame a strong legal and factual argument, anticipate counterpoints from IRAS and avoid procedural pitfalls.

It is also advisable to maintain an open and constructive communication with IRAS during the review stage. This may help to resolve disputed issues without the need to escalate them to the ITBR, thus saving both time and cost. Finally, before proceeding with an appeal, one should always assess the potential benefit involved (or the amount of tax saved) to see if it justifies the time, expense and uncertainty involved. This strategic evaluation ensures that resources are invested wisely, and that the appeal process is approached with a clear understanding of the possible outcomes.

 

Talk to our Specialists

At RSM, we have extensive experience guiding clients through every stage of a tax dispute, from preparing the Notice of Objection to presenting matters before the ITBR. Our Tax Dispute Resolution specialists combine deep technical knowledge of income tax law in Singapore with practical insights into the IRAS processes, enabling us to develop clear, evidence-based arguments tailored to your unique circumstances.

We assist in gathering and presenting documentation, managing deadlines and engaging constructively with IRAS to seek efficient resolution. Where litigation becomes necessary, we work closely with your legal counsel to present your case effectively, all while helping you anticipate and plan for the financial implications.

With RSM as your trusted partner, you can approach your tax disputes with confidence, clarity and a strategy designed to protect your business interests. To learn more about our services, you may contact one of our specialists. 

Talk to our specialists

Koh Puay Hoon
Partner & Head of Tax

+65 6594 7820
[email protected] 
Andrew Tan
Senior Director, Dispute Resolution
+65 6594 7859
[email protected] 
Jamie Chuah
Senior Manager, Dispute Resolution
+65 6594 7318
[email protected]