Inland Revenue Authority of Singapore can appoint banks to act as collecting agents

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http://www.straitstimes.com/premium/forum-letters/story/banks-legally-obligated-make-deductions-certain-cases-20140708

We assure customers that banks operate based on customers' mandate ("Do banks have absolute authority over customers' funds?" by Mr Lim Tong Wah; last Thursday). Banks do not unilaterally transfer funds without any authorisation from customers.

However, there are exceptions provided under relevant tax Acts when banks can be appointed by the Inland Revenue Authority of Singapore to act as collecting agents to deduct unpaid taxes from the taxpayers' accounts with the banks.

In such circumstances, the banks are legally obligated to make the deductions. We hope this clarifies the situation.

Ong-Ang Ai Boon (Mrs)
Director
The Association of Banks in Singapore