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Subject Heading
• Assisted Self-help Kit (ASK) is a self-assessmentpackage
• Designed specially by IRAS
• To facilitate voluntary compliance of GST-registered businesses
• To manage GST risks in an effective manner
What does ASK stand for?
4
Subject HeadingHow to use ASK?
55
GOOD GST COMPLIANCE
GST
Practices
Pre-Filing
Checklist
ASK
Annual
Review
Section 1 Section 2 Section 3
Putting in place the requirements
Getting it Right before the Return
Submission
Ensuring Accuracy of Return
GST
Practices
Pre-Filing
Checklist
ASK
Annual
Review
Subject Heading
• May be adopted on a voluntary basis, by all GST-registered businesses regardless of turnover
• But conducting ASK is compulsory if you are applying for any of the following GST schemes
• Import GST Deferment Scheme (IGDS)
• Approved Marine Customer Scheme (AMCS)
• Approved Contract Manufacturer and Trader (ACMT) Scheme
• Approved Refiner and Consolidator Scheme (ARCS)
• Major Exporter Scheme (MES); or
• Approved Import GST Suspension Scheme (AISS)
When do we use the ASK?
6
Subject Heading
• In-house GST personnel or accounting staff; or
• External tax advisory firms; or
• An individual accredited with the Singapore Instituteof Accredited Tax Professionals (SIATP) as anAccredited Tax Advisor (GST) [ ATA (GST) ] orAccredited Tax Practitioner (GST) [ ATP (GST) ]
Who can perform the ASK annual review?
7
Subject HeadingHow does ASK benefit you?
8
Understand GST requirements on filing and record-
keeping
Review and ensure accuracy of GST
submissions
Reduce risks of incurring penalties
on errors made
Discover past GST errors early for timely disclosure to IRAS, and enjoy zero or reduced
penalties under IRAS’ Voluntary Disclosure Programme (“VDP”)
Qualify for specific GST schemes
Subject Heading
• WXY Pte Ltd.'s last GST return for financial year ended 31 Dec 2015 is for the quarterly accounting period ended 31 Dec 2015
• Statutory filing date for this last GST return is 31 Jan 2016
• ‘Grace period’ to qualify for VDP is 31 Jan 2017
More on IRAS’ VDP...
9
ASK Annual Review
1 Jan 2015 31 Dec 2015
31 Jan 2017 (last day of VDP
grace period)
31 Jan 2016 (statutory filing date of GST return for period ended 31 Dec 2015)
E.g. If WXY discloses the
errors found in ASK Annual
Review to IRAS on 30 Jun
2016, penalty will be
waived on the errors made
for year 2015.
Reduced penalty
of flat 5% under
VDP on errors
made before
1 Jan 2015
30 Jun 2016 31 Jan 2017
Subject HeadingASK Package
11
GOOD GST COMPLIANCE
GST
Practices
Pre-Filing
Checklist
ASK
Annual
Review
Section 1 Section 2 Section 3
Subject HeadingSection 1: GST Practices
13
GST COMPLIANCE
PeopleRecord-keeping
SystemInternal Controls
Subject HeadingSection 1: GST Practices
15
Essential Requirement:
Keep all accounting records and supporting documents for a statutory period
Good Practices:
a) Document record-keeping processes for future handover
b) Keep electronic records instead of hardcopies for easy storage and retrieval
ILLUSTRATIONRECORD-KEEPING:
Keep Complete Records
Subject HeadingSection 1: GST Practices
16
Use the template worksheets (or a comparable equivalent) to maintain internal records of all your GST related transactions, e.g.
ILLUSTRATIONRECORD-KEEPING:
Keep GST worksheets
Standard-Rated Supplies ListingName of Business: ABC Pte Ltd
GST Registration No: 1234567A
GST Reporting Period: 1/4/2016 to 30/6/2016Invoice
DateInvoice Number
Name of Customer Description of Sales Invoice amount excluding GST
(S$)
GST per invoice (S$)
14-Apr-16 12346 Mango Pte Ltd Sale of mobile phones – Local 27,000.00 1,890.00
Apr-16 27,000.00 1,890.00
8-May-16 12347 Longan (S) Pte Ltd Sale of machinery – Local 42,500.00 2,975.00
May-16 42,500.00 2,975.00
13-Jun-16 12350 Lychee Pte Ltd Sale of mobile phones – Local 35,000.00 2,450.00
15-Jun-16 12351 Rambutan Ltd Sale of mobile phones – Local 15,500.00 1,085.00
16-Jun-16 12354 Durian Pte Ltd Sale of mobile phones – Local 7,500.00 525.00
23-Jun-16 12355 Mango Pte Ltd Sale of mobile phones – Local 19,500.00 1,365.00
30-Jun-16 12356 ZZZ Pte LtdSale of commercial property located in Singapore 450,000.00 -
Jun-16 527,500.00 5,425.00
Total 597,000.00 10,290.00
Box 1 Box 6
GST > GST-registered businesses > Learning the basics > How to implement GST > Invoicing, Price Display and Record Keeping >
Subject HeadingSection 1: GST Practices
17
Essential Requirement:
Accounting system to record sales and purchases
Good Practices:
Computerised accounting system with auto-checks (duplicates, variances etc.)
ILLUSTRATIONSYSTEM:
Accounting System
Subject HeadingSection 2 : Pre-Filing Checklist
20
GOOD GST COMPLIANCE
GST
PracticesPre-Filing
Checklist
ASK
Annual
Review
Section 1 Section 2 Section 3
Subject Heading
• Quality check on your GST declarations before filingGST returns
• Series of questions and answers, based on the keyprocesses in GST declarations
Section 2 : Pre-Filing Checklist
21
Subject Heading
• There are six pre-filing checklists covering:• Standard-rated Supplies and Output Tax
• Zero-rated Supplies
• Exempt Supplies
• Taxable Purchases and Input Tax & Refunds claimed
• Goods imported under MES and Other ApprovedSchemes
• Goods imported under IGDS scheme
Section 2 : Pre-Filing Checklist
22
Subject HeadingSection 2 : Pre-Filing Checklist
24
ILLUSTRATIONPRE-FILING CHECKLIST :
Zero-Rated Supplies
Yes
No
Step 1 : Run through the questions provided in each checklist
Step 2 : Select a response
Step 3 : Check if you have adopted the correct GST treatment / maintain the requisite documents/ adopt the correct procedure
Subject HeadingSection 3 : ASK Annual Review
26
GOOD GST COMPLIANCE
GST Practices
Pre-Filing Checklist
ASK Annual Review
Section 1 Section 2 Section 3
Subject HeadingSection 3 : ASK Annual Review
27
• Conduct review on your GST returns filed in each financial year
STEP 1: Review your GST Declarations for the Past Financial Year
STEP 2: Select GST Return(s) for Review
STEP 3: Perform Checks for the Selected GST Return(s)
STEP 4: Review and Compare your Financial Statements against the GST Declarations for the Same Financial Year
STEP 5: Quantify your Errors (if any) and Submit the Findings to IRAS
Review listing
Select samples
from listing
Check supporting documents
To conduct prescribed checks on selected transactions to ensure correct GST treatment
To select 3-month period with highest Total Supplies & Taxable Purchases for further substantive testing
Holistic review and conduct simple checks
Checks to ensure GST returns declarations tie in with financial statements and any discrepancies are accounted for
Subject HeadingSection 3 : ASK Annual Review
28
• Step 1: Review your GST Declarations for the Past Financial Year
Check for: Action:
1 Major fluctuations in your supplies and
purchases
Assess if the fluctuation is in line with
your business cycle or due to
significant change to your business
2 “Declared output tax” less “Computed
output tax” > - $10,000
Explain and reconcile the difference.
3 “Declared input tax” less “computed
input tax” > $10,000
Explain and reconcile the difference.
4 Taxable Purchases over Total
Supplies (i.e. TP/TS) ratio for the year
> 1.2
Evaluate if this trend is reasonable
and explain reasons for the high
TP/TS ratio.
Subject HeadingSection 3 : ASK Annual Review
30
• Step 2: Select GST Return(s) for Review
• Determine which GST return(s)
• Determine number of GST return(s)
Compute Total Supplies (Box 4) + Taxable Purchases (Box 5)
for each GST return
Select and review the GST return(s) with
highest total
Filing frequency
No. of return(s) to select
Which return(s) to select
Quarterly 1 The GST return with highest total
6-monthly 1 The GST return with highest total
Monthly 3 The GST return with highest total AND another 2
consecutive GST returns
Subject HeadingSection 3 : ASK Annual Review
31
• Step 3: Perform Checks for the Selected GST Return(s)
• Review your Listing
• Check all your GST listings to ensure:
• Listing totals tally with respective boxes in GST return(s)
• Listings are complete (i.e. all your GST transactions are captured in the listings)
Review your listing
Select samples from your listing
Check your supporting
documents for the samples selected
Review your listing
Select samples from your listing
Check your supporting
documents for the samples selected
Subject HeadingSection 3 : ASK Annual Review
32
• Step 3: Perform Checks for the Selected GST Return(s)
• Select Samples from your Listings
• For each box, follow the Flowchart on Selection of Samples
• Select samples from your GST listing(s) to cover your major business scenarios
Review your listing
Select samples from your listing
Check your supporting
documents for the samples selected
Subject HeadingSection 3 : ASK Annual Review
33
• Select Samples from your Listings
Yes
No
Yes
No
a. Select a total of 30 samples from your listing
b. Please refer to paragraph 2 of Step 3A to 3E on what your selected samples must cover
Do these 30 samples cover ≥ 30% of the total value in your
listing?
a. Select more samples until the samples cover ≥ 30% of the total value in your listing. Alternatively, select any other 30 more samples to make up the maximum total of 60 samples (40 for Standard-Rated Supplies)
b. Proceed to check your supporting documents for all samples
Proceed to check your supporting documents for these 30 samples
Is the total number of transactions in your listing for the selected return(s) >
30?
Proceed to check your supporting documents for ALL transactions in the listing
Subject HeadingSection 3 : ASK Annual Review
34
• Select Samples from your Listings
Value of the 30 samplesDo you need to select more samples?
Your sample size will be:
Equal or more than 30% of the total transactions value
No. 30
Less than 30% of the total transactions value
Yes. E.g. You select another 10 samples and the value of these 40 samples can reach 30% of the total transactions value.
40
Yes.E.g. You select another 30 samples and the value of these 60 samples still cannot reach 30% of the total transactions value.
60(i.e. the maximum number of samples
required)
Subject HeadingSection 3 : ASK Annual Review
35
• Step 3: Perform Checks for the Selected GST Return(s)
• Check your supporting documents (e.g. tax invoices, credit notes, import permits, export documents, etc.) for samples selected to ensure:
Review your listingSelect samples from
your listing
Check your supporting
documents for the samples selected
GST Transaction Check to ensure
Standard-rated Supplies and Output Tax GST is properly charged
Zero-rated Supplies Goods: Export documents are maintainedServices: Supplies qualify for zero-rating
Exempt Supplies Supplies qualify for GST exemption
Input Tax and Refunds Claimed GST is properly claimed
Goods imported under MES / A3PL / IGDS / Other Approved Schemes
GST is properly suspended (e.g. under MES) or deferred (under IGDS) according to conditions of the scheme
Subject HeadingSection 3 : ASK Annual Review
36
• Step 3: Perform Checks for the Selected GST Return(s)Name of Business: ABC Pte Ltd
GST Registration Number: 1234567A
GST Reporting Period: 1/4/2016 to 30/6/2016
Invoice Date Invoice Number
Name of Customer
Description of Sales Destination of Export
Invoice Amount
(US$)
Invoice Amount
(S$)
18-Apr-16 12344 XYZ Ltd Sale of mobile phone – Air UK 10,000.00
29-Apr-16 12345 BBB Pty Ltd Sale of mobile phone – Air Australia 8,500.00
30-Apr-16 12348 DEF Inc. Sale of mobile phone – Air USA 1,000.00 1,500.00
Apr-16 1,000.00 20,000.00
2-May-16 CN1001 DEF Inc. Cancellation of sales - inv #12348 USA (1,000.00) (1,500.00)
25-May-16 12349 BBB Pty Ltd Sale of mobile phone - Sea Australia 11,500.00
May-16 (1,000.00) 20,000.00
22-Jun-16 12353 XYZ Ltd Management services UK 20,000.00
30-Jun-16 12358 BBB Pty Ltd Sale of mobile phone - Sea Australia 10,000.00 Jun-16 20,000.00
Total 60,000.00
Box 2
1(a): Listing total tallies withBox 2 in GST return
1(b): Listing is complete. “Missing” invoice number 12346 and 12347 are issued for standard-rated supply and are in the Standard-rated Supply Listing
Subject HeadingSection 3 : ASK Annual Review
37
• Step 3: Perform Checks for the Selected GST Return(s)
Name of Business: ABC Pte Ltd
GST Registration Number: 1234567A
GST Reporting Period: 1/4/2016 to 30/6/2016
Invoice Date Invoice Number
Name of Customer
Description of Sales Destination of Export
Invoice Amount
(US$)
Invoice Amount
(S$)
18-Apr-16 12344 XYZ Ltd Sale of mobile phone – Air UK 10,000.00
29-Apr-16 12345 BBB Pty Ltd Sale of mobile phone – Air Australia 8,500.00
30-Apr-16 12348 DEF Inc. Sale of mobile phone – Air USA 1,000.00 1,500.00
Apr-16 1,000.00 20,000.00
2-May-16 CN1001 DEF Inc. Cancellation of sales - inv #12348 USA (1,000.00) (1,500.00)
25-May-16 12349 BBB Pty Ltd Sale of mobile phone - Sea Australia 11,500.00
May-16 (1,000.00) 20,000.00
22-Jun-16 12353 XYZ Ltd Management services UK 20,000.00
30-Jun-16 12358 BBB Pty Ltd Sale of mobile phone - Sea Australia 10,000.00 Jun-16 20,000.00
Total 60,000.00
Box 2
Supply of services
Credit note issued
Different customers
Different export scenarios for goods
Different export scenarios for goods
Subject HeadingSection 3 : ASK Annual Review
38
• Check your supporting documents for samples selected
• Check the invoices issued
3.1(b): Total sales amountis recorded correctly inthe listing
3.1(a) : No GST amount orGST amount is recordedas zero (‘0’)3.1(c): Determine whether
the supply made is ongoods and/or services.Then, proceed to checkother documents anddetermine if the supply iscorrectly zero-rated
Subject HeadingSection 3 : ASK Annual Review
• Check your supporting documents for samples selected
• Check the transport document(s) for export of goods
39
Export via SEA –BILL OF LADING
Export via LAND –EXPORT PERMIT
Export via AIR –AIR WAYBILL
3.2(b)(iii): Contains sufficient information tosupport that the goods exported are identical tothe goods sold
3.2(b)(ii): Goods are to be exported from Singapore to an overseas country
3.2(b)(i): Your business name is shown as the exporter
Subject HeadingSection 3 : ASK Annual Review
• Step 3B: Check your Zero-rated Supplies
International transport of passengers and/or goods
Services supplied directly in connection with land and goods outside Singapore
Specific services performed wholly outside Singapore (e.g. exhibition services, etc.)
Services supplied to and directly benefiting a person belonging outside
Singapore
Prescribed services supplied to and directly benefiting an overseas person belonging outside Singapore in his business capacity
Prescribed services comprising international telecommunication transmission
ZER
O-R
ATI
NG
OF
INTE
RN
ATI
ON
AL
SER
VIC
ESInv #12353 (dated 22 Jun 2016) : Management services provided to XYZ
Ltd in UK
Services supplied to and directly benefiting a person belonging
outside Singapore
40
Subject HeadingSection 3 : ASK Annual Review
• Step 4: Review and Compare your Financial Statements againstyour GST Declarations for the Same FY
• Compute annual Total Supplies less your Sales* :
Compute the yearly ratio of Total Standard-rated Supplies (Box 1) over Total Supplies (Box 4) of your GST returns
Yes (i.e. ratio is 75% or more ) No (i.e. ratio is < 75%)
Are your annual Total Supplies in GST returns < your Sales in the financial statements? Compute
the difference
No further action is required for GST
‘ASK’ Annual Review purposes
No
Yes
Is your yearly ratio of Total Standard-rated Supplies over Total Supplies > 75%?
Reconcile and provide explanation when the difference is more than $150,000
Reconcile and provide explanation when the difference is more than$500,000
41* Sales may also be referred to as Trading Income, Turnover or Revenue. You should also include other income such as rental, interest and etc.
Subject HeadingSection 3 : ASK Annual Review
• Step 4: Review and Compare your Financial Statements against your GST Declarations for the Same FY
• Transactions with related parties and non-trade transactions
• Account back the GST previously claimed on purchases not paid after 12 months
42
Subject HeadingSection 3 : ASK Annual Review
• Step 5: Quantify your Errors (if any) and Submit your Findings to IRAS
43
Outcome Action
No error discovered Complete and submit the Declaration Form to IRAS
Error(s) discovered
Non-GST error Quantify and report non-GST amount in error for the selected GST return(s)
Isolated GST error
Quantify and report GST amount in error for the selected GST return(s)
Recurring GST error
Quantify and report GST amount in error for:A) the selected GST return(s) and other affected returns of same FY;B) affected GST return(s) filed in current FY
C) each affected FY for the past 5 years* if the error is discovered in Step 3(An estimation, subject to IRAS’ approval may be allowed if it is difficultto quantify actual amount)
Do not correct your error(s) immediately in GST F7 or in your next GST F5. IRAS will advise youon how to correct the error(s) – if you are under ASK Annual audit review
• Error relating to an accounting period on or after 1 Jan 2007 is to be corrected within 5 years from the end of that accounting period.
Subject HeadingSection 3 : ASK Annual Review
44
STEP 1: Review your GST Declarations for the Past Financial Year
STEP 2: Select GST Return(s) for Review
STEP 3: Perform Checks for the Selected GST Return(s)
STEP 4: Review and Compare your Financial Statements against your GST Declarations for the Same Financial Year
STEP 5: Quantify your Errors (if any) and Submit your Findings to IRAS
© 2017 Inland Revenue Authority of Singapore. All rights reserved.
Thank You
The information presented in the slides aims to provide a better general
understanding of taxpayers’ tax obligations and is not intended to
comprehensively address all possible tax issues that may arise. This information
is correct as at 06/06/2017. While every effort has been made to ensure that this
information is consistent with existing law and practice, should there be any
changes, IRAS reserves the right to vary its position accordingly.
45