- Overview of Audit Activities: The Inland Revenue Authority of Singapore (IRAS) has outlined its GST audit and enforcement initiatives, revealing that over 2,800 audits were conducted in FY2024/2025, resulting in $205 million recovered, including penalties for non-compliance.
- Common Compliance Issues: The IRAS highlights frequent GST errors and compliance gaps identified during audits, emphasizing the importance of strong GST governance, including knowledgeable personnel, effective record management, and robust internal controls to mitigate risks.
- Voluntary Disclosure and Reporting: Businesses are encouraged to make voluntary disclosures to IRAS for any GST errors, which may incur lower penalties than those identified through audits. Additionally, individuals can report suspected tax malpractices and potentially receive a reward of 15% of the recovered tax, up to $100,000.
Source Orbitax
Understanding IRAS GST Audits: Common Errors, Compliance Tips, and Recent Case Studies
- The webpage provides information on IRAS audit and enforcement efforts and recent audit cases.
- It highlights common GST errors and compliance issues businesses should avoid.
- IRAS conducts regular GST audits using a risk-based approach.
- In FY2024/2025, over 2800 GST audits were completed, recovering $205 million including penalties.
- Businesses are at higher risk of GST errors if they lack proper compliance oversight.
- Strong GST governance helps businesses avoid costly mistakes.
- Key elements of good GST compliance include knowledgeable personnel, effective records management, robust internal controls, and regular reviews.
- IRAS shares audit cases to help businesses avoid common GST errors and encourage voluntary disclosures.
- Voluntary disclosures incur no penalty or lower penalties than errors found by IRAS.
- Individuals can report suspected malpractices and may receive a reward if it leads to tax recovery.
Source: iras.gov.sg
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
