This alert highlights key features and implications of participating in IRAS’ new initiatives on tax governance and tax risk management.
On 17 February 2022, the Inland Revenue Authority of Singapore (IRAS) published its tax governance and tax risk management initiatives on its website to promote the adoption of good tax governance principles and practices for large companies, including the issue of an e-Tax Guide on the Tax Risk Management and Control Framework for Corporate Income Tax.
Eligible companies may choose to participate in each of the IRAS’ initiatives depending on their readiness and business needs to demonstrate their good tax governance and tax risk management. Designed to operate as independent voluntary compliance initiatives, the initiatives are as follows:
- Tax Governance Framework (TGF)
- Tax Risk Management and Control Framework for Corporate Income Tax (CTRM)
- Goods and services tax (GST) Assisted Compliance Assurance Programme (ACAP)
TGF and CTRM are new voluntary compliance initiatives introduced by the IRAS, while the GST ACAP was introduced in 2011.
In this alert, we highlight the key features and implications of participating in the new initiatives and more importantly, explore some possible key benefits and considerations for large companies contemplating these initiatives.
The co-authors of the alert are Wai Fook Chai, EY Asean Tax Accounting & Risk Advisory Services Leader; Swee Thiam Teh, Partner, Tax Services, Ernst & Young Solutions LLP; and Andy Heng, Associate Director, Tax Services, EY Corporate Advisors Pte. Ltd.
