Do not ignore an outstanding tax refund when preparing a strike-off application. Establish the company’s entitlement and tax position before closing accounts or declaring that it owns and owes nothing.
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ACRA’s strike-off guidance specifically asks companies to check outstanding tax credits. IRAS’s closing-company guidance should also be reviewed for the company’s actual tax obligations.
Reconcile the expected refund
Collect assessments, account statements, payments and correspondence. Separate an estimated refund in the accountant’s working papers from a credit actually established by IRAS.
Identify whether a query, assessment or other liability could affect the amount. Do not promise shareholders a distribution based on an unconfirmed figure.
Example: the bank account is closed too early
The directors close the company account while a refund remains unresolved. Give advisers the actual timeline and ask how the matter should be handled. Do not redirect a company entitlement to a personal account without establishing the lawful process.
Prepare the closing tax pack
- Final trading date and accounting period.
- Returns and assessments for relevant periods.
- Payments, credits and outstanding queries.
- Refund evidence and payment arrangements.
- Any other registration requiring attention.
A cessation date does not by itself establish that every tax matter has been completed. Obtain official outcomes for the actual work required.
Coordinate the strike-off decision
Review whether the company meets all applicable criteria before applying. A refund is not an item to erase merely to make a closing balance sheet appear empty.
ACRA explains that tax credits remaining after dissolution transfer to IPTO and that recovery by shareholders can involve a process and fees. Resolve the issue beforehand where possible, with appropriate advice.
Retain evidence after completion
Keep the final tax position, bank records, lawful settlement of balances and official strike-off outcome. Application approval is not the same event as final dissolution.
Can an expected refund simply be written off to speed closure?
Assess the real entitlement and proper legal and accounting treatment first.
Related company closure resources
See our shareholder loan review, filing history checklist and continuing guarantee guidance.
Get help with company closure
Email [email protected] or WhatsApp +65 8501 7133. We provide corporate secretarial and accounting support, with tax advisers to review outstanding tax matters. Legal advisers from our associated law firms can assist with creditors, closure disputes, restoration and winding-up questions.