Uncovering IRAS GST Audit Focus Areas: GST Controls System for Effective GST Management

In FY2020/21, IRAS GST audit 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.

In 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
  • 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

• The WHAT, WHY, WHEN and HOW Accounting and Tax professionals should Evolve to Effectively Manage GST Risk and Keep Penalties to a Minimum
  • 3Ws to apply when keying and verifying transactions
  • How to ascertain completeness of GST reporting

• GST Reporting Aspect and the Controls Available to Support GRBs in its GST Reporting
  • Importance of Chart of Accounts
  • Looking at AP aging report
  • Sampling

• Recent Updates on Taking GRBs Forward
  • IRAS recent audit initiatives