TAX REFUND FOR CORPORATIONS AND INDIVIDUALS

Mr Chuang Shaw Peng asked the Minister for Finance what is the outstanding number of cases where corporations and individuals apply for tax refund; and whether his Ministry will expedite the processing of the refund so as to ease the cash flow of those who applied.

Dr Richard Hu Tsu Tau: As at the end of September 1998, the number of tax refunds to be processed by IRAS was about 14,500.

5,700 of these refunds are claimed by registered GST traders for input tax paid on their business purchases. GST traders filed their claims monthly, quarterly or yearly based on the filing frequency they have chosen. More than 90% of the traders get their GST refunds within 2 to 3 weeks of their claim.

The refund for the other taxes, namely, income and property taxes are also expeditiously dealt with. 85% of income tax refunds are made within 2 weeks after the claims are processed. The more complicated cases may take 4 to 6 weeks. Refunds for property tax usually take about 1 month from the date the claims are processed.