In FY2020/21, IRAS GST revenue collection was $10.3billion.
In Singapore, the business approach and volume has evolved and grown given the co-existing COVID-19 strategy. In tandem to this, IRAS GST audit focus has also been calibrated to that of business focus and 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.
Tagging to the proposed GST rate calibration from 1 January 2023 as well as aligning ourselves closer to what IRAS is looking at, we will through this timely and highly practical workshop, we will examine and evaluate the contributing factors to GST gaps observed during IRAS GST audit, and how GRBs could minimise them to ensure effective GST management.
Revisit of GST Fundamentals
- To know areas about GST (including reverse charge & imported services)
- GST classification reference point
- The A.M.A. concept
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 specification and fine tuning required 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
GST Reporting Aspect and the Controls Available to Support GRBs in its GST Reporting
- Importance of Chart of Accounts
- Input tax apportionment & Reverse charge
- Looking at AP aging report
- Sampling
Readiness for the GST rate change
- General transitional concerns
- Areas of concern beyond just tweaking the system to reflect 7% to 8%
- What to look out for and how to manage it
- Aligning ourselves better prospectively