WE REFER to Saturday's letter, 'Base Giro plan on latest income returns'. Our staff had spoken to Madam Khoo and informed her on Monday that her Giro plan had already been cancelled last Thursday.
There would, therefore, not be any deduction from her bank account next month. The officer whom she spoke to earlier over the telephone was concerned that it might be too late for us to cancel her Giro plan and had thus informed her that the amount deducted in May from her bank account would be refunded to her subsequently.
We apologise to Madam Khoo for the inconvenience caused. We are also sorry that our letter dated March 31 only reached her two weeks later and we are checking into the delay. We would also like to explain how the Giro scheme for income tax payment works.
Income tax is payable on an individual's income of the preceding year. The tax is to be paid within 30 days of the date of the Notice of Assessment. Under the Giro scheme, a taxpayer is given a maximum of 12 interest-free instalments to pay his tax. The instalment plan is based on his previous year's tax. The first instalment starts in May and ends the following April. The plan is revised when his tax assessment is finalised.
If the taxpayer wishes to adjust his instalment plan before his actual tax is determined, he can do so by contacting our officers. A Giro plan can also be cancelled at any time.
Yvonne Yim Seon Young (Ms)
Principal Corporate Communications Officer
Inland Revenue Authority of Singapore
This article was first published in The Straits Times on April 30, 2008
