Since its inception in 1994, the Goods and Services Tax (GST) has increased from 3% to the current rate of 7%. The impact on businesses is not insignificant, as shown in the example below, where the potential GST exposure far exceeds that of the corporate tax payable.

Example

-------------------------------------------------------------------- Sales   $1,000,000 Less: Purchase   $700,000 -------------------------------------------------------------------- Gross Profit   $300,000 -------------------------------------------------------------------- Corporate Tax Payable $300,000 x 18% = $54,000 -------------------------------------------------------------------- Potential GST Exposure (Sales + Purchase) x 7% = $119,000 --------------------------------------------------------------------

The rate increase has also led to more attention being paid to GST by the Inland Revenue Authority of Singapore (IRAS).

The number of GST audit cases has been on the uptrend in recent years. Of the total tax and penalties recovered, GST accounts for more than 50% (S$103 million*).

These figures unveil an underlying phenomenon - that GST has long been at the back seat of businesses which invariably outsource their corporate tax filing to professionals but not their GST filing, notwithstanding that GST filing is more frequent.

This however is set to change. Attention to GST issues will assume increasing, if not equal importance to that of corporate tax. This is especially so as the IRAS has, for the first time, publicly announced the sectors that it will be focusing its GST audits for the year – wholesale electronic traders, SME manufacturers, motor traders and marine fuel traders. This shows that the IRAS is continuously stepping up on its GST audits activities.

GST is poised to be the next driver for government revenue with another rate increase expected in the next few years. Businesses without dedicated internal resources especially may find it a challenge to keep abreast of changes in GST rules and regulations and applying them correctly on transactions to ensure overall GST compliance.

ABOUT THE TEAM
In RSM Chio Lim LLP, we have a team of dedicated GST specialists who have substantial experience from the GST departments at the IRAS and Big 4 accounting firms.

The wealth of practical experience in our GST team, gained from the perspectives as regulator and advisor, positions us well to provide practical guidance to businesses on their GST matters.

Eu Chin Sien, Director, GST Services
Chin Sien heads the GST unit of the firm’s Tax Division. She has more than 13 years experience in handling GST compliance and advisory matters. She also conducts regular workshops and seminars on GST topics and issues.

Prior to joining RSM Chio Lim LLP, Chin Sien was a Senior Manager with PricewaterhouseCoopers Services LLP (PwC) where she specialised in GST for 8 years. At PwC, Chin Sien assisted businesses primarily in the non-financial industry, including manufacturing, semi-conductor, real estate, advertising and non-profit organisations on various GST matters. Her key achievements included the successful recovery of GST in excess of millions for clients.

Chin Sien also spent more than 4 years with the IRAS where she led a team as a Senior Tax Auditor in conducting GST compliance audits of varied industries.

Eddie Soh, Manager, GST Services
Eddie has more than 10 years of practical GST experience where the first 4 years were spent with the IRAS as a Tax Auditor in the GST Refund department.

Prior to joining RSM Chio Lim LLP, Eddie was an Assistant Manager with PricewaterhouseCoopers Services LLP where he was one of the key members in assisting clients in the Compliance Assurance Programme (CAP) conducted by the IRAS. With the experience gained in the CAP projects, Eddie is well positioned to assist companies who are keen to volunteer for the Assisted Compliance Assurance Programme (ACAP) that will be introduced by the IRAS this year.

Besides, Eddie was involved in numerous Compliance Reviews (GST Healthchecks) where he advised clients of the risk areas and compliance issues and assisted clients in making voluntary disclosure of errors to the IRAS to ensure overall GST compliance.

Jessica Chua, Assistant Manager, GST Services
Jessica has more than 9 years of practical GST experience, the first 3.5 years of which were with the IRAS GST Refund Department as a Tax Auditor, where she conducted audits on businesses seeking refunds in their GST submissions.

Prior to joining RSM Chio Lim LLP, Jessica was an Assistant Manager with PricewaterhouseCoopers Services LLP where she advised clients on the GST implications of various business arrangements and transactions, and provided practical solutions and recommendations to specific situations. Besides, she also assisted many businesses in improving their overall GST compliance through GST Healthcheck reviews.

OUR GST SERVICES
Our dedicated GST team offers the full spectrum of professional GST assistance in the following areas:

• Application for GST registration
• Application for various GST relief schemes (e.g. Major Exporter Scheme (MES), Zero GST Warehouse Scheme)
• Review and e-filing of GST returns
• Conducting MES audit / review for application / renewal of MES status
• Advise on GST implications involving business start-up, restructuring, new business arrangements and complex transactions
• Advise on internal controls for GST reporting
• Managing and responding to queries from the IRAS
• Preparation of submission / ruling to the IRAS
• Review and advise on accounting system logic for GST coding
• Conducting GST Compliance Review (GST Healthcheck)
• Conducting Assisted Compliance Assurance Programme (ACAP) audit
• Conducting GST due diligence for merger and acquisition transactions
• Conducting in-house GST training customised to specific business transactions

Contact us for an obligation-free discussion.