IRAS Provides Guidance on Audits and Investigations on Missing Trader Fraud Arrangements

The Inland Revenue Authority of Singapore has issued new guidance on Audits and Investigations regarding Missing Trader Fraud Arrangements. The guidance highlights the identification of Missing Trader Fraud as a key compliance risk, and the use of advanced data analytics and whistle-blower tip-offs to detect such cases. Missing Trader Fraud involves fictitious transactions aimed at illicitly claiming GST refunds or avoiding tax obligations. Perpetrators create chains of sales and purchases to evade paying GST to IRAS, resulting in a loss of government revenue. The fraudulent supply chain may involve borrowed identities and fictitious businesses. This type of fraud has significant financial implications for both businesses and Singapore.

Source Orbitax

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