IRAS conducts GST audits of companies to ensure that they comply with the GST regulations, and to check for accuracy with all their information, assumptions and computations. IRAS has stepped up its audits on large businesses but medium size businesses may also be subjected to GST audit at times.
They have published a checklist, known as Assisted Self-Test Kit (ASK) to help GST registered businesses (GRB) to self-assess their compliance with the regulations. ASK is essentially a pre-filing checklist to ensure the accuracy of GST declaration prior to filing the returns with the IRAS. In some cases, the self-check is mandatory for certain GRBs to participate in the following government schemes:
- Import GST Deferment Scheme (IGDS)
- Approved Marine Customer Scheme (AMCS)
- Approved Contract Manufacturer and Trader (ACMT) Scheme
- Approved Refiner and Consolidator Scheme (ARCS)
- Major Exporter Scheme(MES)
- Approved Import GST Suspension Scheme (AISS)
Besides ASK, there are other means to ensure compliance and to avoid audit. IRAS has the following GST compliance programmes:
Assisted Compliance Assurance Programme (ACAP): This is a holistic review of the company’s systems, process and capabilities to identify, assess and mitigate GST risks with endorsement by an accredited GST specialist. The merits of participating in ACAP include
- stepping down of GST audits for a maximum period of five years
- faster GST refunds
- automatic renewal of GST schemes
- full waiver of penalties for past errors, and
- faster issuance of rulings and resolutions.
However, for many GRBs it is not easy to manage the GST issues all by themselves, and when they receive notification from the IRAS informing that their business has been shortlisted for a GST audit, it is a cause of concern and anxiety for the business owners. Though companies take adequate measures to ensure compliance, there could be some inadvertent errors that may raise red flags during the audit. Depending on the nature, circumstances and scope of the non-compliance, the repercussions of such findings will impact the company, in the form of further investigations, penalties, or even imprisonment leading to wastage of resources.
Read more about Singapore GST Audit at Singapore Tax & Accounting Services website.
