Tax Audit and Investigation Services
Dealing with a Tax Audit or Investigation by the Inland Revenue Authority of Singapore (IRAS) can be mentally and emotionally taxing—especially when the tax issues span several years. The process often involves intense scrutiny of financial records, frequent interviews, and complex tax jargon used in communications from IRAS, all of which can be overwhelming without proper guidance.
Are you prepared to handle this alone? Are you equipped to negotiate effectively with IRAS?
At WLP Singapore, our Tax Audit and Investigation Services Team is here to support you through every stage of the process. We understand how stressful a tax audit or investigation can be and are committed to reducing its psychological, emotional, and financial impact on our clients. Led by Mr. Tan, who brings deep expertise in handling IRAS audits and investigations, our team provides reliable and strategic support. If you’ve received a query letter from IRAS or experienced a premises raid, contact us immediately.
Penalties for Tax Offences
Tax audits and investigations should never be taken lightly. The consequences of tax evasion are severe:
- Income Tax Evasion: Penalties can be up to 400% of the tax undercharged, fines of up to SGD 50,000, and/or imprisonment of up to 5 years under Section 96A of the Income Tax Act.
- GST Evasion: Penalties can reach 300% of the tax undercharged, fines of up to SGD 10,000, and/or imprisonment of up to 7 years under Section 62(1) of the GST Act.
Even if IRAS cannot prove intent to evade tax, you may still face penalties for negligence. Errors made without reasonable excuse may result in penalties of up to 200% of the tax undercharged, fines of up to SGD 5,000, and/or imprisonment of up to 3 years.
With professional support, the audit or investigation process can be significantly less stressful. Let us help carry the burden so you can focus on growing your business.
Voluntary Disclosure Program (VDP)
If IRAS hasn’t approached you yet but you’re aware of discrepancies in past tax filings, it’s wise to act preemptively. IRAS’s Voluntary Disclosure Program (VDP) encourages taxpayers to correct mistakes before audits or investigations begin. Penalties under the VDP are significantly lower than those imposed during an audit or investigation.
To qualify for reduced penalties, you must:
- Voluntarily disclose all tax errors before IRAS contacts you
- Ensure the disclosure is complete and accurate
- Cooperate fully during the process
- Pay any additional taxes and penalties promptly
We can assist in reviewing your past filings and guide you through the VDP process to resolve issues before they escalate.
Whistleblower Program
IRAS offers a reward of up to SGD 100,000 for credible information from whistleblowers. Former employees or business associates might be incentivised to report tax irregularities. If you suspect you may be subject to a future audit or investigation, and there are concerns about your tax compliance, we can help you rectify past filings through the VDP before IRAS takes action.
Tax Due Diligence Services
Planning to acquire or merge with another business? Conducting a tax due diligence review on the target company is crucial. Overlooking past tax issues can lead to prolonged disputes with IRAS after the deal is completed. Our team can perform thorough due diligence to identify any potential tax exposure and help resolve them before finalising the transaction.
Get in Touch
WLP Singapore is here to support you with:
- Tax Audit and Investigation Services
- Voluntary Disclosure Assistance
- Tax Due Diligence for Mergers and Acquisitions
Contact us today to speak with our team and safeguard your business from unnecessary tax risks.