Incidence of IRAS Invoking Its Anti-avoidance Powers under Income Tax Act

Mr Abdul Muhaimin Abdul Malik asked the Prime Minister and Minister for Finance in each of the last five years (a) how many cases has IRAS invoked its anti-avoidance powers under the Income Tax Act; (b) how much additional tax was assessed in such cases and how much has been recovered; and (c) how many cases involved taxpayers extracting business profits as tax-exempt dividends and interest-free shareholder loans.

Mr Jeffrey Siow: From 2021 to 2025, Inland Revenue Authority of Singapore invoked its anti-avoidance powers on 124 occasions and assessed $49 million in additional tax. Thus far, $48 million has been recovered. All but one of the cases involved taxpayers extracting profits as tax-exempt dividends or interest-free shareholder loans.