Tag: ACAP

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.

Fourth Edition of the IRAS e-Tax Guide “Major Exporter Scheme” issued

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 fourth edition of the e-Tax Guide, “GST: Major Exporter Scheme”.

The Major Exporter Scheme (MES) is a scheme whereby the payment of GST is suspended at the point of importation of goods. MES traders will be allowed to import non-dutiable goods without paying GST to Singapore Customs (‘SC’). Regulation 45 of the Goods and Services Tax (General) Regulations provides for the suspension of payment by GST-registered persons who qualify for the MES of GST on importation of non-dutiable goods.

GST-registered businesses applying for MES or whose MES status is due for renewal will have to submit the Assisted Self-Help Kit (ASK) declaration form, “ASK: Declaration Form on Completing Annual Review & Voluntary Disclosure of Errors” (Section 3 of ASK) certified by either their own in-house or external tax professionals who are Accredited Tax Practitioners (GST) or Accredited Tax Advisors (GST).

Businesses participating in the GST Assisted Compliance Assurance Programme (ACAP), holding a valid ACAP status will not be required to submit ASK declaration form if:

  • the Post ACAP Review (PAR) is performed; and
  • the “PAR Declaration” form (GST F28) is submitted.

Successful ACAP applicants also are not required to submit the ASK declaration form pending the result of ACAP review and submission of ACAP Report. If they subsequently withdraw from participating in ACAP, businesses are then required to perform and submit the ASK declaration form within three months. Should they fail to obtain an ACAP status, there may be a requirement for submission of the ASK declaration form on a case-by-case basis.

In the fourth edition, paragraphs 2.3 and 6.3 have been revised to reflect the streamlined procedure for submission of the ASK declaration form for businesses with ACAP status as outlined above.

The e-Tax Guide is available on the IRAS website.

The third edition was published on 18 September 2015.

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.

IRAS’s issues e-Tax Guide “Import GST Deferment Scheme (4th 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 fourth edition of the e-Tax Guide, “GST: Import GST Deferment Scheme”.

The e-Tax Guide explains how Import GST Deferment Scheme (IGDS) works and sets out the qualifying conditions of IGDS as well as the responsibilities of an IGDS business.

IGDS allows an approved business to defer the payment of import GST until the submission of the GST return for the prescribed accounting period. This scheme is not applicable to customs or excise duties, which remain payable upfront at the point of importation.

As an approved IGDS business, businesses are required to account for the deferred import GST in the GST return for the period in which the import GST is payable. If the goods are imported for the business of making taxable supplies, they are entitled to claim the import GST as input tax in the same period.

IGDS will apply to both dutiable and non-dutiable overseas goods under the following circumstances:

  • Direct imports into Singapore
  • Imports released from Zero-GST/Licensed warehouses for local consumption

In the fourth edition, paragraphs 7.2(a) “Application process for IGDS” and 8.4 “Renewal of IGDS” were amended to reflect the new process for businesses with ACAP status where the “ASK: Declaration Form on Completing Annual Review & Voluntary Disclosure of Errors” is not required if a Post ACAP Review (PAR) is performed and the “PAR Declaration” form (GST F28) is submitted. Similarly, if businesses have successfully applied to participate in ACAP to be performed by an independent ACAP Reviewer, the certified ASK declaration form will not be required, unless the ACAP participation is subsequently withdrawn or there is failure to obtain ACAP status.

The third edition was published on 18 September 2015.

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.

 

IRAS issues e-Tax Guide on GST – Assisted Compliance Assurance Programme (ACAP)

On By taxsgIn Goods and Services Tax, Latest Tax News

2 September 2013

In the third edition of the ACAP Guide issued by the Inland Revenue Authority of Singapore, revisions were made to paragraph 10 concerning the ACAP Annual Review. A new information leaflet providing more details on the Annual Review was also included as Appendix 2.

A new form, GST F28 “ACAP Annual Review Declaration” was inserted while existing GST F24 “Claim for Co-funding of GST ACAP” was modified.

Source: Inland Revenue Authority of Singapore

ACAP co-funding under phase two is now closed

On By taxsgIn General News

13 May 2013

Businesses to take note that the funding allocated under Phase 2 of the Application for Assisted Compliance Assurance Programme (ACAP) has been fully taken up on 30 April 2013. IRAS has informed through its website that the application for co-funding is closed.

GST-registered businesses with ACAP status within a five-year period ie from 5 April 2011 to 4 April 2016 will be entitled to a 50% co-funding of qualifying ACAP fees capped at $50,000 and a one-time waiver of penalties for voluntary disclosures of past GST errors. Other benefits include three to five years of exemption from GST audits, faster GST refunds, speedier resolution of GST issues and automatic renewal of GST schemes.

More information on ACAP co-funding can be found on the IRAS website.

Source: Inland Revenue Authority of Singapore (IRAS)