74.—(1) Where it appears to the Comptroller that any person liable to tax has not been assessed or has been assessed at a less amount than that which ought to have been charged, the Comptroller may, within the year of assessment or within 6 years (if the year of assessment is 2007 or a preceding year of assessment) or 4 years (if the year of assessment is 2008 or a subsequent year of assessment) after the expiration thereof, assess that person at such amount or additional amount as according to his judgment ought to have been charged.
[11/94; 53/2007]
(2) Notwithstanding subsection (1), where, in the opinion of the Comptroller, any form of fraud or wilful default has been committed by or on behalf of any person in connection with or in relation to tax, the Comptroller may, for the purpose of making good any loss of tax attributable to fraud or wilful default, assess that person at any time.
(2A) Despite subsection (1), an assessment under that subsection may be made at any time if it is carried out pursuant to an agreement with an authority of a country outside Singapore, that is made in accordance with the procedure under an avoidance of double taxation arrangement with the government of that country, for resolving difficulties or doubts arising out of the interpretation or application of that arrangement (commonly called a mutual agreement procedure).
[Act 39 of 2017 wef 26/10/2017]
[Act 27 of 2021 wef 16/11/2021]
(2B) Subsection (2A) applies to —
(a)
an agreement (other than one mentioned in paragraph (b)) entered into on or after 26 October 2017; and
(b)
an agreement on the appropriate criteria to be used to ascertain the transfer pricing of a person’s transactions with the person’s related parties over a specified period (commonly called an advance pricing arrangement), entered into on or after the date on which the Income Tax (Amendment) Act 2021 is published in the Gazette.
[Act 27 of 2021 wef 16/11/2021]
(3) The provisions of this Act as to notice of assessment, appeal and other proceedings under this Act shall apply to any assessment or additional assessment made under subsection (1) or (2) and to tax charged thereunder.
(4) This section shall also apply, with the necessary modifications, to any assessment made under subsection (1) or (2) which results in any unabsorbed allowances or losses.
[32/99]
(5) To avoid doubt, the Comptroller may also make an assessment under this section on a person in a case where —
(a)
the Comptroller made an advance assessment on the person for a year of assessment; and
(b)
because of a subsequent amendment to any written law that applies retroactively to that year of assessment, the person becomes liable to a higher amount of tax.
[Act 39 of 2017 wef 26/10/2017]
(6) In this section —
“avoidance of double taxation arrangement” means an arrangement having effect under section 49;
“related party” has the same meaning as in section 13(16).