A GST registered supplier is obliged to collect the GST paid by its purchaser and pay the GST to the Comptroller of Goods and Services Tax (CGST).
The recent Draft Goods and Services Tax (Amendment) Bill 2020 (the “Draft Bill”) authorises the CGST to deny input tax claims by suppliers in the supply chain who are not directly involved in MTF and the law introduced by the Draft Bill is expected to come into effect this year.
This seminar led by expert speakers Liu Hern Kuan and Catherine Chiang. Liu Hern Kuan, who currently represents clients affected by MTF, will outline legal and practical issues surrounding MTF and carousal fraud, including when a supplier knew or ought to have known that a supply was part of a fraudulent arrangement under the current law and under the new framework. Catherine will share from a GST practitioner perspective on addressing GST fraud.
Introduction to Missing Trader Fraud ("MTF") and Carousal Fraud
a. What is MTF and Carousal Fraud?
b. Illustrations of the different arrangements
c. Two Parts of the Chain: Input Tax and Zero-Rating
d. Customer Accounting to Combat MTF
e. Tips / Steps to Protect Yourself
Denial of Input Tax Claim: Law Applicable
a. The Pre-Amendment Position
b. The UK/ EU Position
c. The New Legislation
d. Appeal process to the GST Board of Review
Criminal Prosecution Liabilities
a. GST offences applicable
b. Criminal prosecution process