Dear Friends and Business Associates
The Inland Revenue Authority of Singapore (“IRAS“) reported in their website on 13 April 2012 that a certified public accountant (“CPA“) was charged for under-reporting his income of approximately S$100,000 and S$55,000 in his income tax returns for Years of Assessment (“YA“) 2006 and 2007 without any reasonable excuse. As a result, he was fined with a penalty of approximately S$52,000 which is two times the tax undercharged. This CPA’s act of under-reporting was discovered through one of IRAS’ regular audit programs that targets a cross-section of industries and professional groups.
What does this mean to you?
- Taxpayers must be aware that heavy penalties would be imposed on non-compliance with our tax legislation, and any act of tax evasion is viewed as a very serious offense in Singapore. It is always a good time to review your past business transactions to determine whether the tax treatment accorded to these transactions can be supported by our tax legislation. If in doubt, you are strongly encouraged to bring this up with your tax consultant.
- IRAS has emphasized more than once that a higher standard is applicable to taxpayers belonging to the tax and accounting professions because they understand the importance of proper record keeping, of preparing financial statements and of filing accurate and timely income tax returns to IRAS.
- Accredited Tax Professionals of the Singapore Institute of Accredited Tax Professionals (“SIATP“) should also be aware that full compliance with tax law and regulation is required pursuant to the Code of Professional Conduct and Ethics (“Code“) for the SIATP. Any breach of the Code may result in disciplinary action initiated by the SIATP.
Code of Professional Conduct and Ethics
If you are a tax professional under SIATP, do you know the following:
- the five key principles in the Code and their application to our tax practice;
- the circumstances under which you are allowed to depart from complying with any of these principles;
- who is actually your client if you are engaged by a corporate taxpayer, a body corporate or a couple;
- the guidance on dealing with the SIATP and IRAS etc.
If you are not clear with all of the above, here is the good news. I will be running the workshop titled “Ethics for Tax Professionals: A Practical Application of the SIATP Code of Professional Conduct.” again on 26 July 2012 at ICPAS’ SAA Campus. In this workshop, I will discuss with my participants in a greater detail of the above issues and my further insights on the compliance with the Code. If you are interested, click the link below for the registration details.
If you have any questions or comments on this alert, please contact us at firstname.lastname@example.org.
Jack HM Wong
Founder and Lead Business & Tax Advisor
WHM Consulting Pte Ltd