GST and Tax Audit Requirements For Companies In Singapore
All GST-registered businesses like supply chains, manufacturers, or retailers charge GST on their sales. They are also permitted to subtract from this amount the GST that is paid on all its purchases.
Thus, each business is entitled to charge GST only on the value that it adds to all products and services. GST is the support of overall taxes paid in Singapore.
The current GST rate in Singapore is 7%. GST was introduced in Singapore in April 1994. Since then, there have been a lot of amendments to the GST policies. This has made business owners often confused when filing for GST tax returns.
Often they have encountered a situation where they have to pay extra dollars as a penalty for not knowing the recent changes in the regulations.
This is another reason why GST audits are done by the IRAS. They review the matched information provided in the GST tax return with the documents provided. It doesn’t mean that you have done something wrong, but it surely helps in educating a taxpayer to comply with the GST rules and to clarify tax laws and policies to the business owner.
This can sometimes become hectic and tiring to handle all logbooks, records, and documents to pass the GST audits, thus people seek the help of financial advisors.
Morrison Mortgage has 30 years of experience in the financial field. They started as the Raffles Corporate Advisory Services. Their team from Singapore and the Philippines is extremely professional and knowledgeable.
Their hard work has shown results and now they get business from around the world. If you’re stuck in tax investigation or GST audits, then you can contact them for reference and advice. They have received rewards and recognition from SiATP, PMC, IPAS, Top SME Achiever Award, Pro Enterprise Panel, etc.
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Purpose of GST Audit
- To make sure that the tax return lodged by the business is abiding by the rules mentioned in tax laws.
- The audit will help you understand your tax responsibilities related to your business and ensure that you imply them.
- It will help clarify the tax laws, processes, and policies easily.
Different Types of Audits
Internal audits are done by the company’s internal department. They review the financial records and the operations of the management. Sometimes companies hire or outsource the internal audit procedures to other financial services.
The statutory audit requires an official evaluation of all financial records of a company. All companies in Singapore need to adhere to the statutory audits because it is required by the law. Many factors are involved in this audit, so it is wise that the company involves a reputable audit firm in Singapore.
Read also: Reasons You Need Financial Planning
This audit requires the valuation of tax reports which are submitted by the company or taxpayer. Tax audit is generally done by the Inland Revenue Authority of Singapore (IRAS). IRAS conducts this audit when any company is suspected of filing for incorrect tax returns.
Auditing is necessary n every company. It is an important and systematic review and analysis of financial statements, reports, management accounts, accounting records, expenses, and revenue. It is good to work with a reputable audit firm in Singapore to get a decent report on your audited financial statement.