About 15,000 taxpayers affected by incorrect tax relief amounts due to MINDEF system error
Approximately 15,000 taxpayers in Singapore were affected by incorrect tax relief calculations due to a system error at the Ministry of Defence. The government has rectified the errors, resulting in a mix of tax refunds and additional payments for those impacted.
Why it matters
This highlights the risks of administrative errors in government digital systems and the importance of transparent rectification processes for public trust.
About 15,000 taxpayers, comprising operationally ready national servicemen (NSmen) as well as eligible parents and spouses, have been affected by wrong NSman tax relief amounts.
This is due to an error in the Ministry of Defence's (MINDEF) system that generated incorrect national service activity records, which were then used to calculate tax reliefs for affected NSmen, MINDEF and the Inland Revenue Authority of Singapore (IRAS) in a joint statement on Thursday (Sept 3).
The inaccuracies were uncovered in May 2026 while MINDEF was reviewing queries from NSmen and checking the accuracy of their records.
"MINDEF subsequently conducted a thorough review of all NS tax relief records for Year of Assessment (YA) 2025 and 2026, and has worked with IRAS to ensure that the correct relief amounts are reflected in the affected taxpayers' assessments," the ministry and IRAS said.
All errors have been rectified by MINDEF, they added.
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