E-filing fails to boost number of taxpayers

Despite the IRAS' introduction of an electronic system, the filing rate for 2011 remains at 88%, about the same as last year.

The agency, however, noted that more than 870,000 taxpayers e-Filed their tax returns by the due date of 18 Apr this year, setting a new high of 96% e-Filing rate. This is an increase of 2% from last year’s 94%.

88,000 taxpayers still filed paper returns.

In a statement, IRAS said some 660,000 of the 790,000 taxpayers under the No-Filing Service (NFS) this year would have found the tax filing season a non-event as only one in six had to log into myTax Portal because they had other income or changes to make to their relief claims.

This year, e-Filing has been enhanced with a tax calculator feature. "As soon as taxpayers have e-Filed, an estimate of the tax payable would be shown on their screens; helping them budget their tax payments," IRAS said.

Currently employers with 30 or more employees are required to transmit the salary information of their employees to IRAS electronically. IRAS intends to extend this requirement to employers with 20 or more employees from 2012.

The move is seen to add 100,000 more taxpayers to the existing 1.1 million who are already on the scheme.

Over the years, IRAS has introduced various self-help services such as Interactive e-Filing Guide and Tax calculators to facilitate tax filing. This year saw more taxpayers using the self-help services to check on their tax matters.

For instance, the “Filetax” SMS Mobile Service allows a taxpayer to check if he is required to file or whether IRAS has received his tax return, a feature popular with taxpayers.

Compared to last year, there was a 39% increase in the usage of the self-help service.

"In contrast, we saw a sharp drop of 35% in the number of calls to the e-Filing helpline this year, down from about 25,000 last year to about 17,000 this year," IRAS said.

With the Notices of Assessment expected to be issued to taxpayers from May onwards and fully distributed by September, the IRAS encouraged taxpayers to join GIRO to enjoy up to 12 interest-free monthly installments.

Joining the GIRO entitles one to spread out the payment over 12 months instead of paying one lump sum within 30 days from the Notice of Assessment to ease cash flow.

"There will be no need to wait in queues to pay and be concerned about late payment penalties. When a taxpayer signs up for GIRO, he maintains full control over his money at all times because he can simply make a telephone call to IRAS to adjust or cancel his GIRO arrangement," IRAS said.

Taxpayers now have one more reason to pay by GIRO – they stand to win cash prizes totaling $65,000 in the “GIRO Your Tax” annual Lucky Draw on 17 May 2011. Two more annual lucky draws will be conducted in 2012 and 2013 to encourage taxpayers to pay tax by GIRO.

"The longer one stays on GIRO, the higher the chances of winning," the agency said.