IRAS updates e-Tax Guide, “GST: Assisted Compliance Assurance Programme (ACAP) (7th Edition)”

On By taxsgIn Corporate Tax, Goods and Services Tax

31 December 2015

On 18 December 2015, the Inland Revenue Authority of Singapore (IRAS) issued the seventh edition of the e-Tax Guide “GST: Assisted Compliance Assurance Programme (ACAP)”.

‘Assisted Compliance Assurance Programme’ (ACAP) was introduced to facilitate GST-registered businesses to better manage their GST risks. ACAP provides a set of guidance for GST-registered businesses to undertake a holistic review of the robustness and effectiveness of their internal control system that impacts GST compliance.

The seventh edition includes changes to the following:

  • Amendment to section 5 on ACAP incentives where IRAS will waive the penalties for voluntary disclosures of non-fraudulent errors for businesses who apply for ACAP participation by 31 March 2019.
  • Amendment to paragraphs 12.1 to 12.5 (Post ACAP Review).
  • Revision to paragraph 12.10 (Renewal of ACAP).

Appendix 1 “GST ACAP Review Guidance”

Amendment to:

  • Paragraph 1.6 (Assessment of Readiness of GST Control Framework): IRAS has provided a “GST ACAP Control Framework Calculator” to facilitate the business’s self-assessment of the extent to which the control features are present.
  • Paragraph 2.1 (Commencement of ACAP Review by the ACAP Reviewer) where it is the responsibility of the CPA firm or its tax affiliate and internal audit team to ensure that it fulfills all the eligibility conditions highlighted in paragraph 8 of the e-Tax Guide “GST: Assisted Compliance Assurance Programme (ACAP)” before accepting the appointment.
  • Paragraph 2.2 (Additional safeguards in the conduct of ACAP Review).

Appendix 2 “Information Leaflet on Post ACAP Review”

  • Editorial changes to paragraphs 2.1(c) and 2.1(d) (Scope of review).
  • Insertion of paragraph 3 (Review period for Post ACAP Review (PAR)).
  • Amendment of paragraph 4.1 on the reduced sample size for standard-rated supplies.
  • Insertion of paragraph 4.2: IRAS may on a case-by-case basis grant approval for reduction in sample size if the business has used analytical tools to perform data analysis of its GST listings such that major streams of income and transactions with higher risk of incorrect tax treatment are identified for substantive review; and
  • Insertion of paragraph 5.1 on regular reviews of the GST returns.

The first edition was published on 5 April 2011.

For further details, please refer to the IRAS’s website.

Source: This article was extracted from the Inland Revenue Authority of Singapore (IRAS) website. Visit http://www.iras.gov.sg for more information.