SINGAPORE: The Inland Revenue Authority of Singapore (IRAS), which has ramped up its efficiency with a new IT system, will soon pay interest if it fails to issue tax refunds promptly.

For Grace Tan, Executive Director of Association of Chartered Secretaries, filing her tax returns online has always been a breeze.

Last year, she received a tax refund of a few hundred dollars from IRAS for child relief.

She is among half a million people who get such refunds every year.

Come July, IRAS said it would dole out interest to taxpayers if it fails to issue refunds within 30 days.

The interest will be based on average prime rates, which is about 5 percent per annum.

Ms Tan said: “It’s a reassurance from IRAS of their commitment to process their refunds within a stipulated time period.”

The initiative was announced by Minister of State for Finance and Transport Lim Hwee Hua at the launch of IRAS’ myTax Portal.

She said: “This is IRAS’ initiative to, in a way, set itself a benchmark and service standard, and to really put more substance to it.”

Currently, less than 1 percent of tax refund cases are administered late.

IRAS hopes to bring the figure down to zero soon.