A sports and concerts event promoter was ordered to pay about S$786,000 in taxes and penalties plus a court fine of S$7,000 for failing to inform the Comptroller of Goods and Services Tax (GST) of its liability to register for GST.
Singapore law, a business with annual taxable turnover exceeding S$1 million
must register for GST. A GST-registered business is required to charge
GST on its sales and can offset the GST it pays on its purchases before
it accounts for the net difference to IRAS.
Businesses are required to regularly assess whether they are required
to be registered for GST, and must register for
GST the moment they see that taxable turnover for the past four quarters has exceeded than S$1 million, or when the business’ taxable turnover for the next 12
months is expected to exceed S$1 million. Businesses need to register for
GST within 30 days of the date on which their liability to register for
The Inland Revenue Authority of Singapore's (IRAS')
investigations revealed that the company's taxable turnover exceeded S$1
million for the four quarters ending 30 June 2004, 30 September 2004, 31 December
2004 and 31 March 2005. It failed to inform the Comptroller of GST of its
liability to register for GST within 30 days of the end of 31 Mar 2005,
that is, by 30 Apr 2005.
reminds businesses to follow GST registration rules by closely
monitoring their taxable turnover at the end of each quarter and
ensuring that they promptly register for GST when their turnover exceeds
S$1 million per year. Regular audit programmes are carried out by IRAS
to identify cases liable for compulsory GST registration.
Businesses failing to register for GST even though they are required
to do so by law can be fined up to S$10,000 and pay a penalty equal to
10% of the tax due from the date on which the business is required to
register for GST. The business’ effective date of GST registration will
be back-dated to the day that its liability to register arose.
Consequently, the business will have to pay the outstanding GST on all
its past transactions since the effective date of registration, even if
this amount was not collected from its customers.
individuals are encouraged to immediately disclose any past tax
mistakes. IRAS will treat such disclosures as mitigating factors when
considering action to be taken. Those who wish to disclose past
mistakes, reveal evaded taxes, or report malpractices that might
indicate tax evasion, can write to IRAS, or email firstname.lastname@example.org.