Addressing a Key Area of Concern in IRAS’ Tax Audit : The GST Input Tax Claims

August 17, 2024

In FY2024/2025 alone, 2,869 GST audits were conducted across a broad spectrum of industries. These audits led to the recovery of over $205 million, including penalties. One of the most glaring mistakes discovered is in the area of incorrect input tax claims, and substantial amount in GST and penalties are recovered yearly from each business due to errors in this area.

Some errors IRAS have uncovered in the course of their audits include:

Dormant businesses making input tax claims in the absence of taxable supplies
Input tax claims not supported by tax invoices / import permits addressed to the businesses or simplified tax invoices
Input tax claims made on disallowed expenses
Input tax claims made on private expenses

A good understanding of input tax recovery rules is crucial in delivering optimal GST claims incurred on purchases, whilst mitigating the risk of penalties. With a clear understanding of these rules, you will know how to examine the conditions that determine when GST can be recovered and how to correctly post the accounting entries for purchases by applying the correct tax treatment for each transaction.

This practical workshop is designed to give you more clarity in the key areas of concern on the recovery of GST on purchases. Our highly experienced trainer will also share on the common input tax errors made by businesses and how you can avoid them.

Input Tax Recovery Rules

Qualifying conditions
Disallowed / blocked expenses
Time of claiming

When can GST be Claimed

Claiming input tax in the right accounting period
Evidence needed to claim GST
- Tax invoice
- Customer Accounting Tax Invoice
- Simplified invoice
- Import permit
Purchases by employees

Determining the Amount of GST to Claim

De-minimis rule
Attribution / apportionment
The impact of partial exemption

Specific Expenses

Gifts
Fringe benefits
Business entertainment
Imported services and Imported Low Value Goods
Prescribed Goods under Customer Accounting

Common Errors to avoid Input Tax Claims

Understanding the common errors, and avoid making them in your claims

Key Learning Points in Recent Tax Case

GHY v. Comptroller of Goods and Services Tax : The GST Board of Review upheld a decision of the GST Comptroller denying the input tax claim of a taxpayer on its purchase of goods from a local supplier on the grounds that it failed to prove that goods were purchased and traded.

As part of our commitment towards minimizing carbon footprint and contributing to a healthier planet, we will only be issuing the soft copy of the training materials.

The training materials will be emailed to you 2 days before the workshop. Charging points are also available in the training room to charge your digital device.

Tax Professionals and Executives
Accounting and Finance Professionals
Business Managers and Directors
Anyone who would like to have or require a practical knowledge of GST Input Tax in his/her professional role

Catherine Chiang

Catherine has more than 20 years of experience in GST consultancy, with more than 10 years of training experience. She has previously spent 6 years in IRAS, handling GST and Income Tax audit and almost 10 years with 2 of the Big Four international accounting firms, specializing in GST compliance and advisory work. During this period, she has accumulated extensive experience in performing GST prudential reviews, GST consultancy, GST compliance and GST training for clients.

Catherine has a Bachelor of Accountancy (Honours) degree from the National University of Singapore. She is an Accredited Tax Advisor (GST) registered with the Singapore Chartered Tax Professionals and an Advanced Certificate in Training and Assessment (ACTA) certified Trainer.