IRAS has recovered S$175 million in GST and penalties during the first nine months of 2019, from audits and investigations of more than 2,000 GST-related cases. Of these, 53 cases were investigated for GST fraud and evasion, of which 20 have been charged in court and 14 of those convicted.
Along with a deeper understanding of the commercial environment, IRAS uses data analytics to detect noncompliance and evasion, sifting through data to identify high-risk cases. Hence, the focus of GST audit by IRAS has moved away from just surface review of GST reports to in-depth analysis of the GST controls systems put in place by GST registered businesses (GRBs). This has enabled IRAS to address the root cause of GRBs operational concerns and gaps that is contributing to incorrect GST reporting and heavy penalties payable.
With the introduction of the Reverse Charge Regime in 2020 , GRBs will also need to be up-to-speed on the possible areas that could be subject to audit.
In this timely and highly practical workshop, we will examine and evaluate the contributing factors to GST gaps observed and how GRBs could minimise them to ensure effective GST management.
Revisit of GST Fundamentals
- Meaning of supply refreshed
- Goods vs Services
- Reference point for determining GST treatment of Goods and Services supplied
The Roles Accounting System and Available Technology Play (e.g. analytics, artificial intelligence) to Better Support GST Reporting and GST Risk Minimisation
- Importance of GST logics and tax codes
- Controls specified in the accounting system
- Regular testing of the controls
- Exception reports
- Relying on technology to make GST risk management fun
Controls Applicable at Transaction Levels
- Duplicate verification function and its effectiveness
- Ability to modify base value and GST amount
- Audit trails
The WHAT, WHY, WHEN and HOW Accounting and Tax professionals should Evolve to Effectively Manage GST Risk and Keep Penalties to a Minimum
- 3Ws to apply when keying and verifying transactions
- How to ascertain completeness of GST reporting
GST Reporting Aspect and the Controls Available to Support GRBs in its GST Reporting
- Importance of Chart of Accounts
- Looking at AP aging report
Recent Updates on Taking GRBs Forward
- IRAS recent audit initiatives
GST on imported service updates
Mr Richard OngPartner & Head, GST Services
RSM Chio Lim LLP
Richard heads the GST Division in RSM Chio Lim LLP. He has more than 15 years of experience in GST with the Inland Revenue Authority of Singapore (IRAS), Deloitte & Touche LLP, and United Test and Assembly Center Ltd (UTAC). His diverse background with the tax authority, professional and commercial firms allows him to share with seminar participants a balanced view and approach towards GST risk management and compliance. Richard has spoken at public seminars in Singapore and Malaysia on topics such as Understanding Goods & Services Tax, Managing GST Risks, the GST Assisted Self-help Kit (ASK) and Malaysia GST. He is also an Accredited Tax Advisor (GST) with the Singapore Institute of Accredited Tax Professionals Limited.