The Inland Revenue Authority of Singapore (Iras) will soon have more powers to investigate potential crimes, thanks to changes to the Income Tax Act.
One such revision will allow Iras officers to enter premises by force or arrest someone without a warrant under certain conditions, including that of a suspect trying to destroy evidence. Other changes include allowing private-hire drivers to claim tax deductions on car-related expenses. Previously, this tax break was only applicable to taxi drivers.
The change means that 60% of a private-hire driver's income may now be considered as expenses. For example, a driver who earns $50,000 (US$36,169) a year in fares as well as S$15,000 (US$10,851) in incentives from platform providers such as Grab could see S$39,000 (US$28,212) - or 60% - of that income deemed as expenses. This means drivers would only be taxed on their net earnings of $26,000 (US$18,808) and claim the rest in personal income tax relief.
Alternatively, the Straits Times reported, drivers could also claim tax deductions on their actual expenses, although doing so would require keeping meticulous records.
Five MPs spoke to the House on the Bill. While Louis Ng (Nee Soon GRC) and Saktiandi Supaat (Bishan-Toa Payoh GRC) supported the changes, they also voiced concerns over possible abuses of power. Lawrence Wong, speaking in his capacity as second Minister for Finance, indicated that alongside other safeguards, tax officers would undergo similar training programmes to those undertaken by the police.
Emma Woollacott is a freelance business journalist. Her work has appeared in a wide range of publications, including the Guardian, the Times, Forbes and the BBC.
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The Inland Revenue Authority of Singapore (Iras) will soon have more powers to investigate potential crimes, thanks to changes to the Income Tax Act.
One such revision will allow Iras officers to enter premises by force or arrest someone without a warrant under certain conditions, including that of a suspect trying to destroy evidence. Other changes include allowing private-hire drivers to claim tax deductions on car-related expenses. Previously, this tax break was only applicable to taxi drivers.
The change means that 60% of a private-hire driver's income may now be considered as expenses. For example, a driver who earns $50,000 (US$36,169) a year in fares as well as S$15,000 (US$10,851) in incentives from platform providers such as Grab could see S$39,000 (US$28,212) - or 60% - of that income deemed as expenses. This means drivers would only be taxed on their net earnings of $26,000 (US$18,808) and claim the rest in personal income tax relief.
Alternatively, the Straits Times reported, drivers could also claim tax deductions on their actual expenses, although doing so would require keeping meticulous records.
Five MPs spoke to the House on the Bill. While Louis Ng (Nee Soon GRC) and Saktiandi Supaat (Bishan-Toa Payoh GRC) supported the changes, they also voiced concerns over possible abuses of power. Lawrence Wong, speaking in his capacity as second Minister for Finance, indicated that alongside other safeguards, tax officers would undergo similar training programmes to those undertaken by the police.
Emma Woollacott is a freelance business journalist. Her work has appeared in a wide range of publications, including the Guardian, the Times, Forbes and the BBC.
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A guide to setting up business in Singapore
Singapore employers to receive S$800m in wage credits this year
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