The percentage of taxation that is happening around today is quite low. Many services are working on making the experience of the personal and corporate tax filers a stress-free one. However, some services make sure that the tax filing procedure is completed without any errors and IRAS is one of such services.
JL Accounts are the best solution for all kinds of investigations and tax auditing works. They are the most preferred service that offers easy tax audit in Singapore, as they help in internal control systems. All kinds of issues such as poor manpower arrangements, improper filing systems, disorganised accounts, and insufficiently trained staff will be handled by them. You can visit their webpage to get all the required information.
If and when there is the detection of false tax filing or omission of some important factor, then the concerned services can charge the penalty of 200% of the tax undercharged amount along with the fine of up to $5000, including imprisonment of up to 3 years. When the intention of this discrepancy in tax filing is concluded to evade taxes, the charges of more than 400% along with an imprisonment of 7 years with a penalty of $50,000 will be charged to the concerned person or institution.
Auditing is the annual procedure of making sure that everything is followed according to the law of the state and no fraud or forgery is conducted by any person or institution during these years. Here, the experts focus on checking the financial affairs, records, accounting books, and other such concerned documents to make sure that the submitted documents comply with the income tax returns as filed by them.
The IRAS officers will conduct the work of auditing and you can expect a visit from 3 to 4 concerned people to your company, during the auditing month.
Here is how the auditing procedure is followed.
Initial Interview The main work of the IRAS officers is to paint a picture of how exactly the procedure is followed. They will start by collecting the necessary information about a company including,
- The main operations that your business handle
- Nature and also the size of your business
- Information on some of the duties and structure of the business including the idea on key management personnel
- Book-keeping and accounting procedures and also the way your business controls all the internal procedures
- Documents and their examination
Here are some of the documents that are reviewed during the procedure of auditing.
- The document sources can be considered as proof for substantiating all the concerned transactions of your business. These documents include vouchers, receipts, invoices, and so on that are exchanged between your company and the concerned suppliers/customers.
- The records and schedules hold all the necessary accounting information. These records include both the expenses and revenues, liabilities and assets, losses, and gains, and other such concerned documents in either manual or electronic forms.
- Detailed statements that are collected from the concerned banks with the company bank accounts
- All the other records that are relevant to the business.
- Field visits duration
Auditing work will be completed within a few hours if yours is a small sector. However, if you own a big business sector, then the auditing work can go on for hours to days, till every branch is covered. Some of the factors such as record maintenance, compliance from the employees, etc., will determine the duration of auditing.
As the term says, the re-visits of the concerned IRAS officers can be expected if there is incomplete documentation or missing documents for them to check. You can arrange a date for their re-visit.
- Third-party information
Some of the auditing jobs may include additional information from third parties, and the IRAS officers welcome such information to get the best idea of how your business is handled.
Avoiding IRAS Auditing
You can steer clear of the audits by engaging the Singapore Tax Auditing Accounting Services. They will help you in the perfect way of filing for taxes, which will, in turn, avoid the chances of an IRAS Audit. They can be your assisting source even when you have missed filing tax, or have made some mistakes during the procedure.
Filing Objections with IRAS
If you feel like you should not agree to the tax assessment that is raised from the IRAS, then you can file for reassessment within 2 months after the Notice of Assessment (NOA) is issued to you. Any delay will make the concerned services consider the NOA as an issue by IRAS officers as the final assessment.
When the IRAS officers notice anything out of the documentation in the tax filing, they will raise an investigation. During such cases, the concerned companies are suggested to comply with their requirements and also to offer complete support, so that everything is handled smoothly. The IRAS team can even suggest a professional adviser help the concerned company that is under investigation.