Non-compliance with record keeping requirements in Singapore is a matter taken seriously by IRAS, regardless of whether improper record keeping was intentional or not. Records must be maintained and stored properly for at least five years.
Failure to comply may result in fines of up to $5,000 or a prison term of up to 12 months for offenders, including relevant staff and directors. The Companies Act may also impose a default penalty if necessary.
Additionally, under the Income Tax Act, individuals convicted of tax-related record fraud may face a fine of up to $1,000 or imprisonment for up to six months if they cannot pay.
Improper record keeping may also lead to an income tax offense, resulting in the rejection of capital allowances or expense claims by IRAS.