On 1st October 2018, Eddie Teo Siah Hai, a company director was charged for offences under the Companies Act and Income Tax Act respectively for failing to hold Annual General Meeting (AGM) and Annual Return (AR) in relation to 16 companies as well as failing to file their Corporate Income Tax returns for Year Assessment 2017 (YA 2017).
Failing to Comply to Companies Act
1. Teoh was convicted and fined $16,800 for 14 charges at $1,200 per charges in the State Courts
2. Pleaded guilty for offences under Section 175 and 197 under Companies Act for failing to file AGM and AR in relation to 16 companies
3. A further 32 charges were taken into consideration for sentencing
4. Disqualified to act as Director for all companies that he has been appointed to
5. Teoh will not be allowed to be a company director or take part in management of any local or foreign companies for 5 years, effective from the date of conviction.
Failing to file Corporate Income Tax
1. Teoh was Company Director for four companies, Britt Worldwide Pte Ltd, BPE-Clyde Pte Ltd, Good Technology Software Pte Ltd and Palmali International Singapore Pte Ltd, which had failed to file Corporate Tax Return YA 2017
2. Penalties were charged at $1,700 for not filing YA 2017.
It is important that every company is compliant to file their AGM and AR as well as Corporate Income Tax. Filing Annual Returns timely will enable to disclose key information to the public of Company's health and status. Failing to comply to these two Act is a serious offence. Not only did it take out a lot of your time and resource, business operation may be affected such that in this case the Director has to be disqualified. Being on time and keep track of the deadlines will save you from these issue. Engage a right person or your trusted agent to assist you in this matter to avoid or minimise the chances of you being non-compliant. Opt for extend filing due date with a valid reason to do so. Finally, get your accounts done up on time, often this is the number 1 cause for failing to comply to the Companies Act.
Josephine L. is one of the Partner in Skillridge Partner. Born in Indonesia, raised and educated in Singapore, She is one of the co-founder of Skillridge Partner. She worked as an auditor/accounts after graduating from RMIT University in 2014. Her interest in connecting with people, bringing about ideas and improvement to businesses and living turns her passion to helping business owners and individuals to be financial literate.