Singapore penalizes 422 landlords over unreported rental income

Some property owners reportedly failed to declare rental income due to the mistaken belief that paying property tax exempted them from reporting such income.

During the 2023 audit, which spanned three years, about 450 landlords were investigated, with nearly two-thirds found to have breached tax rules.

Referring to the latest group of offenders, IRAS said it will not hesitate to take swift enforcement action to ensure that all landlords fulfill their tax obligations and contribute their fair share.

It is a serious offense to attempt to mislead the tax authority by submitting incorrect information with the intention of reducing tax payable.

For example, those found to have filed tax returns with errors, omissions or discrepancies may face penalties of up to 200% of the undercharged tax. More serious offenders may also be fined up to SGD5,000 and jailed for up to three years.

Those who deliberately create sham arrangements to evade taxes face heavier penalties of up to 400% of the undercharged amount, as well as fines of up to SGD50,000 and jail terms of up to five years.