This alert covers the IRAS’ current focus for GST audit and summarises how the Knowledge Principle aims to counter MTF arrangements.
The Inland Revenue Authority of Singapore (IRAS) has announced on its website that it is currently focusing its GST audit and investigation efforts on businesses involved in Missing Trader Fraud (MTF) arrangements.
This announcement should not come as a surprise, considering the various steps taken in the run-up to this announcement. For example, the Goods and Services Tax (Amendment) Act 2020, gazetted on 7 December 2020, included measures to enhance the Comptroller of GST’s powers to safeguard public funds and investigate tax offences. An e-Tax guide was also issued subsequently to provide guidance on how businesses may recognise and respond to the risk indicators of a possible involvement in an MTF arrangement.
In this Indirect Tax Alert, we take a look at the IRAS’ current area of focus for audit – MTF arrangements and summarise how the Knowledge Principle aims to counter MTF.
