Serious Sinkie Paid $5k For The Privilege of Doing NS Reservist!

Dear ASS,

I am writing in to share my story related to SAF.

I am a Singapore citizen, did the armies for 2 years and currently required
to go back for reservist every year. I have been back for than 5 times for my
reservist already.

I am a self employed, currently doing a few small businesses. Therefore, for
every reservist, I have to submit for my make up pay claim in order to get my
make up pay. It is only recently I realized something to my surprise I
thought I share this with the rest of the national servicemen.

In 2015, I attended a 14 days in camp training and as usual, I submit my
document for my make up pay claim. As 2015 has not come to an end during
then, I do not have my tax documents(Notice of Assessment) for 2015 ready.
Therefore, I have to use the previous years NOA for my make up pay claim. I
believe this practice has always been the case as I have been doing so for a
few years now and I believe many self employed will understand what I am
talking about.

So 2014 has been a pretty good year for me, my annual income for that year
was around 200k (just a indicative figure). Therefore, the make up pay claim
for that particular 2 weeks was a pro rate of the 200k / 365 days X 14. I am
not sure how they calculate but I suppose it is like this.


Going on to 2015, which hasn't been a good year for me. My income for that
year has reduced drastically to 60k(indicative). And as usual, I file my
income tax with iras this year(2016) sometime during April.

So now my NOA for 2015 is ready and just like everyone else, I have to make
tax payments. I then hear from Mindef that my income is for 2015 is much
lesser than 2014 so therefore, I have to pay them back the pro rated balance.

For example;

200000 / 365 X 14 = $7671
60000 / 365 X 14 = $2301

I have to pay the differences of $5370. I am like what the f***?

After hearing their explanation, I sort of understand their stand. As your
NOA for that year of reservist can never be ready within that year. We always
have to use the previous year's NOA for our make up claim which is inaccurate
and based on a rough estimation. Okay, this I can understand.

So now that I have declared my income tax for 2015 and they realized it is
different from 2014 and they are asking me back to the difference of the pro
rated sum. I think I can accept this as I really did not make as much as 2014
but I am only very surprised because it is really new to me and I dont think
many self employed ns men knows about this as well.(I ask my army friends
and everyone was like; where got such thing one?!) I think it is good I share
this experience with the rest because for my scenario, the difference in the
sum is actually pretty hefty.

Besides, it is a bad economy and recession now. Times are already so bad and
out of a sudden have to pay back such hefty sum. Not happy also cannot do
anything. Suck thumb and pay and pay.

Krampus

- More at AllSingaporeStuff.com http://www.allsingaporestuff.com/article/nsman-forced-pay-saf-5370-serving-his-reservist
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This is one of biggest scewed up practice in SG's IRAS. Earn first this year, pay tax in April next year. Most people would had spent their previous year's earnings. Worst are those retrenched last year and used up their savings for the remainder of year and have to pay income tax this year.

If I recall correctly, a neighboring country recently converted their tax collection practice to deduction from current salary before giving the remainder to employees. To reduce taxpayer's burden to pay last year's and current year tax, they write off last year's tax to start anew. I may be wrong but I think I am correct how they did it.

PAP will never do such good deed for the citizen. They rather continue this earn-first-pay-later practice which cause much hardship to those who could not save for tax purpose, than to convert to a better practice for the people.

This is how it supposed to be. He is lucky enough mindef gave him loan in advance. They could have asked him to claim only after the income is firmed.
Sometime you cannot be too kind to sinkies

Brightkid said:

This is one of biggest scewed up practice in SG's IRAS. Earn first this year, pay tax in April next year. Most people would had spent their previous year's earnings. Worst are those retrenched last year and used up their savings for the remainder of year and have to pay income tax this year.

If I recall correctly, a neighboring country recently converted their tax collection practice to deduction from current salary before giving the remainder to employees. To reduce taxpayer's burden to pay last year's and current year tax, they write off last year's tax to start anew. I may be wrong but I think I am correct how they did it.

PAP will never do such good deed for the citizen. They rather continue this earn-first-pay-later practice which cause much hardship to those who could not save for tax purpose, than to convert to a better practice for the people.

Click to expand...

The disadvantage of deducting tax from monthly salary is that if later part of the months you not working you still pay tax.
Iras should use the average of previous year and current year if the sinkie has no more income. I ever been in this situation too .this yr earn a lot following yr no income still need to pay high income tax. Even can pay by instalment also tough.

Brightkid said:

This is one of biggest scewed up practice in SG's IRAS. Earn first this year, pay tax in April next year. Most people would had spent their previous year's earnings. Worst are those retrenched last year and used up their savings for the remainder of year and have to pay income tax this year.

If I recall correctly, a neighboring country recently converted their tax collection practice to deduction from current salary before giving the remainder to employees. To reduce taxpayer's burden to pay last year's and current year tax, they write off last year's tax to start anew. I may be wrong but I think I am correct how they did it.

PAP will never do such good deed for the citizen. They rather continue this earn-first-pay-later practice which cause much hardship to those who could not save for tax purpose, than to convert to a better practice for the people.

Click to expand...

im sorry its the same practise in US and most countries i presume?u have to set aside what u think is the tax for this year's income.if ur self employed like a trader or poker player for example,when u declare all ur profit or earnings at the end of the year and pay ur taxes regardless of whether u have already spent all the money or not.if ur employed,i presume ur company will take care of ur cpf and taxes for you.

write off last year's tax to start anew,any country would be insane to do that,do u know how much money it cost to keep a country running?ur taxdollars is part of the budget to keep the country going,losing one years' taxes is like losing one year of ur income,it will totally destroy the budget and put the country into huge deficit.

which party did this dumbass vote for?

my god i just checked iras website and it says Singapore collected 43 billion in taxes in 2015 and 10 billion of it came from GST.and we are getting these pathetic gst voucher for $250?do u know 10 billion can give every sinkie $3000 to $4000?really is give u chicken wing and take back one whole chicken.really is raise gst to help the poor.sucking $4000 from each of us and giving us back $250 is called helping the poor?

chootchiew said:

The disadvantage of deducting tax from monthly salary is that if later part of the months you not working you still pay tax.
Iras should use the average of previous year and current year if the sinkie has no more income. I ever been in this situation too .this yr earn a lot following yr no income still need to pay high income tax. Even can pay by instalment also tough.

Click to expand...

they wont refund u the tax if u no income?

frenchbriefs said:

they wont refund u the tax if u no income?

Click to expand...

We are paying tax for previous year income. So if this yr no income then next yr then no need pay. But this year need to pay previous year income.

chootchiew said:

We are paying tax for previous year income. So if this yr no income then next yr then no need pay. But this year need to pay previous year income.

Click to expand...

oh right....

Brightkid said:

This is one of biggest scewed up practice in SG's IRAS. Earn first this year, pay tax in April next year. Most people would had spent their previous year's earnings. Worst are those retrenched last year and used up their savings for the remainder of year and have to pay income tax this year.

If I recall correctly, a neighboring country recently converted their tax collection practice to deduction from current salary before giving the remainder to employees. To reduce taxpayer's burden to pay last year's and current year tax, they write off last year's tax to start anew. I may be wrong but I think I am correct how they did it.

PAP will never do such good deed for the citizen. They rather continue this earn-first-pay-later practice which cause much hardship to those who could not save for tax purpose, than to convert to a better practice for the people.

Click to expand...

If you want, anytime we can do the same! But your baby bonus, maid levy deductions, stay with parents deductions and many many more nation building allowance deductions you dun want? How to deduct monthly? IRAS let you keep more moneys and gib u interest free pay later scheme you dun like? You should learn to manage your finances better and stop spending them all on whores!

What kind of idiot is that? Are Singaporeans really that stupid?!