It is natural to be concerned when your company is selected for a tax audit by the Inland Revenue Authority of Singapore (IRAS). While the first thing that may pop into your head is the concern of any wrongdoing or error in your tax filing, let us reassure you that there is nothing to worry about if your business is selected for a tax audit.
Why you need not be concerned about a tax audit
1. The possibility of an audit is very low
Before you spend sleepless nights fretting over your company’s taxes being audited by IRAS, let us reassure you that the possibility of your business being chosen is extremely low. This is because such checks are performed randomly and on a case-to-case basis to ensure proper coverage of enterprises across all industries.
The statutory board determines the candidates for a tax audit by utilising a database of tools and analytics to profile businesses according to their compliance risk. In other words, when IRAS subjects a company to a tax audit, this does not necessarily mean that the company is being targeted.
Moreover, IRAS is less likely to target companies with zero filing errors for their prior tax submissions. Therefore, it is essential for you to be punctual and meticulous with your company’s tax filings. Businesses that accomplish that have nothing to worry about during tax season.
2. A tax audit does not automatically mean a business has done something wrong
While it is true that IRAS can audit companies when it suspects that they have committed errors in their tax documentation, this is not always the case. As mentioned, the audit checks are usually random. So if your company is selected, do not panic! It is likely a sheer coincidence and does not mean your business has done something wrong.
More than likely, IRAS simply wants to obtain additional documentation or an explanation about a specific item in your tax filings. This may be part of a legal procedure or just a random decision. To avoid causing any unnecessary trouble, we recommend you respond promptly and cooperate with IRAS as much as possible.
3. Professional services are available to help businesses with their tax problems
Of course, while the chances of your company being selected for a tax audit are random, you still have to ensure your business’s finances are in order to prevent any discrepancies from occurring during your tax filings.
However, we understand that entrepreneurs are busy people. This is why it is advisable for companies to outsource their accounting needs to a specialised audit firm. You can rely on the expertise of the firm’s tax professional to ensure your business is tax-ready.
At Ackenting Group, our veteran accountants possess years of experience handling the tax filings of multiple clients from various industries. As such, you can rest easy knowing your company’s finances are in safe hands when you engage our reliable tax accounting services. We have a team of qualified tax experts who can help you manage your tax reporting and filing obligations and ensure that your business is always in compliance with IRAS regulations.
Conclusion
A tax audit conducted by IRAS might initially seem like a frightening prospect, but we hope what we have shared has alleviated your concerns. These tax audits are essentially just a way for IRAS to ensure that the nation’s tax law is being complied with. So if your company has been selected for an upcoming tax audit, do not fret! As long as you remain compliant and cooperative throughout the audit process, everything will turn out fine.
If you require any assistance on accounting services, feel free to drop us an email at johnwoo@ag-singapore.com or contact us at +65-66358767. At Ackenting Group, we offer a complimentary 30 minutes online consultation for us to better understand your business requirements.
