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Not so simple to provide the Estimate of Chargeable Income
24 Mar 2017 (41 views)

I logged into IRAS website to attend to some matter. I was alerted to complete the ECI form, which has an expiry date of 30 March 2017. I did not receive any email reminder. I noticed it only by accident.

I searched for an explanation of ECI. I could not find it in the website. IRAS must have assumed that the public knows what ECI meant. I searched outside the website. It meant Estimate of Chargeable Income. 

The website said that it would take just 5 minutes to complete the ECI form. That is what they say. They forgot that it would take much longer to understand what needs to be filled in and where to get the figure. 

The ECI form asked for three information - the revenue, the chargeable income and the tax rate. They expect the tax payer to be familiar with how the different tiers of tax rate work. That is an unrealistic assumption.

I searched by annual report and got my revenue and profit (which is a small modest figure). When I entered this profit and use the tax rate of 17%, it showed the tax payable. But I do not know what tax rate actually applies to me. 

I have carried forward losses. What should be the figure that I enter? If I enter the profit for this year, I will be billed with tax based on this figure. How will IRAS treat the brought forward loss? I have no idea. 

I looked for guidance in the website. They have several dozen links. It looks like a wild goose chase. 

I decided to enter the chargeable income as $0. I hope that that does not make me into a tax dodger! 

I am sure that there are more than 100,000 companies in the same situation as me, i.e. with a carried forward loss. Why don't IRAS make it clear that I have to enter the chargeable income for this year and that they will deduct any carried forward loss before computing the tax?

Why can't IRAS decide on the tax rate applicable to me, rather than ask me to specify what tax rate I have to pay?

I wanted to call a hotline for explanation, but that would take me at least one hour to talk to someone. 

This must have been the practice for several years. Surely IRAS knows that their website is confusing to the public?

 


Not so simple to provide the Estimate of Chargeable Income
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I logged into IRAS website to attend to some matter. I was alerted to complete the ECI form, which has an expiry date of 30 March 2017. I did not receive any email reminder. I noticed it only by accident.

I searched for an explanation of ECI. I could not find it in the website. IRAS must have assumed that the public knows what ECI meant. I searched outside the website. It meant Estimate of Chargeable Income. 

The website said that it would take just 5 minutes to complete the ECI form. That is what they say. They forgot that it would take much longer to understand what needs to be filled in and where to get the figure. 

The ECI form asked for three information - the revenue, the chargeable income and the tax rate. They expect the tax payer to be familiar with how the different tiers of tax rate work. That is an unrealistic assumption.

I searched by annual report and got my revenue and profit (which is a small modest figure). When I entered this profit and use the tax rate of 17%, it showed the tax payable. But I do not know what tax rate actually applies to me. 

I have carried forward losses. What should be the figure that I enter? If I enter the profit for this year, I will be billed with tax based on this figure. How will IRAS treat the brought forward loss? I have no idea. 

I looked for guidance in the website. They have several dozen links. It looks like a wild goose chase. 

I decided to enter the chargeable income as $0. I hope that that does not make me into a tax dodger! 

I am sure that there are more than 100,000 companies in the same situation as me, i.e. with a carried forward loss. Why don't IRAS make it clear that I have to enter the chargeable income for this year and that they will deduct any carried forward loss before computing the tax?

Why can't IRAS decide on the tax rate applicable to me, rather than ask me to specify what tax rate I have to pay?

I wanted to call a hotline for explanation, but that would take me at least one hour to talk to someone. 

This must have been the practice for several years. Surely IRAS knows that their website is confusing to the public?