Goods and Services Tax (GST) Services

While the current rate of GST at 7% is much lower than the corporate tax rate of 17%, the tax and penalties recovered by the Inland Revenue Authority of Singapore (IRAS) from GST audits in the latest financial year (FY) was significantly higher than that from income tax.

Tax & Penalties Arising from Audit & Investigation (in millions)

Source – IRAS Annual Report 2009/2010

The number of GST audit cases has been on the uptrend in recent years. Of the total tax and penalties recovered for the latest FY, those arising from GST accounts for more than 70% (S$154 million). It registered a 49.5% increase over the previous year.

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.

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.

Our GST Services
We offer the full spectrum of professional GST assistance in the following areas:

Dealing with the IRAS

• Application for GST registration / de-registration
• Application for various GST relief schemes (e.g. Major Exporter Scheme (MES), Zero GST Warehouse Scheme)
• Conducting MES audit / review for renewal of MES status
• Managing and responding to IRAS queries
• Preparation of submission / ruling to the IRAS for tax concessions
• Making voluntary disclosure of errors to the IRAS to mitigate penalty exposures
• Managing IRAS audits / investigations

Compliance Support

• Review and e-filing of GST returns
• Conducting GST Compliance Review (GST Healthcheck)
• Conducting Assisted Self-help Kit (ASK) review
• 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

 

Compliance Support

• Advice on GST implications involving business start-up, restructuring, new business arrangements and cross border transactions
• Assisting with dispute resolutions
• Review and advice on internal controls for GST reporting
• Review and advice on accounting system logic for GST coding

Contact us for an obligation-free discussion.