Negligent taxpayers If you submit an incorrect return, you can be fined up to two times the amount of tax undercharged. In addition, you could find yourself facing a fine of up to $5,000 or jail for up to three years, or both. Wilful taxpayers Anyone who evades tax or helps someone else do so faces a penalty of three times the amount of tax undercharged. There may also be a fine of up to $10,000 or jail for up to three years, or both. Voluntary compliance Taxpayers who have made errors or submitted incorrect returns are encouraged to come forward to disclose errors or omissions and to get their tax affairs in order. As an incentive, Iras has reduced the penalty for voluntary disclosures which meet certain qualifying conditions. The penalty for voluntary disclosures made by individual taxpayers within a grace period of one year from the statutory filing date of April 15 will be waived. Voluntary disclosures made after the grace period will incur a standard reduced penalty rate of 5 per cent a year if these disclosures meet qualifying conditions. Refer to Iras e-Tax Guide on 'Iras Voluntary Disclosure Programme' or www.iras.gov.sg/irashome/vdp.aspx for further details. If you want to disclose past errors in your returns, e-mail iit_compliance@iras.gov.sg or call 6351-3122 or 6351-3121. This article was first published in The Straits Times. http://business.asiaone.com/Business/My%2BMoney/Building%2BYour%2BNest%2BEgg/...