Tax audit and investigation

Tax audit is a primary activity of the tax authorities under the Self Assessment System ["SAS"] in enhancing and encouraging voluntary compliance with the tax laws and regulations. It also ensures that a higher tax compliance rate is achieved under the SAS. A taxpayer can be selected for audit at any time to ascertain that the amount of tax reported and paid are in accordance with the tax laws and regulations.

Other than tax audit, tax investigation is a more severe enforcement measure taken by the tax authorities to ensure compliance with the tax legislations by taxpayers.

Generally, tax investigation will be carried out should there be a suspicion - based on precise and definite evidence – that a taxpayer is deliberately trying to avoid paying tax or has committed an act of wilful evasion under the tax laws.

More often than not, both tax audit and tax investigation will result in additional taxes and penalties payable on under-statement or omission of income.

As such, our methodologies and good rapport with the tax authorities put us in an advantageous position to resolve tax audit and investigation cases for our clients in a swift and amicable manner, resulting in lower tax and penalty payable.

Our tax audit and investigation services include:

  • Replying to queries raised by the tax authorities
  • Preparation of workings, computations, reconciliation and supporting schedules required by the tax authorities
  • Reviewing and appealing on proposals given by the tax authorities
  • Submitting alternative proposals to the tax authorities to resolve issues in dispute
  • Attending meetings and discussions with the tax authorities in the pursuit of an amicable settlement with the tax authorities

As a pre-emptive measure in mitigating the potential taxes and penalties by ensuring compliance with the tax laws and regulations, we also provide a "prudential tax audit" (a.k.a. health check) for the purpose of identifying significant areas of concerns and recommending corrective actions.

Our "prudential tax audit" services include:

  • Undertaking a high level review of the financial statements, tax returns and computations, etc. to identify significant areas of concerns
  • Reviewing supporting documents to confirm that the tax treatments adopted are in order
  • Recommending corrective actions