If the Inland Revenue Authority of Singapore (IRAS) selects you for a tax audit, knowing your rights and obligations is crucial to ensure a smooth process. This guide explains what Singapore taxpayers should expect, how to cooperate with IRAS, and how to protect your legal interests during an audit.
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📌 Understanding the IRAS Audit Process
An IRAS audit is a review of your tax filings to verify that your reported income, deductions, and tax payments are correct. Audits can be random or triggered by tax anomalies such as unusual deductions, mismatched third-party data, or inconsistent income patterns.
✅ Your Rights as a Taxpayer During an Audit
- Right to Information – You are entitled to know the scope, reason, and duration of the audit.
- Right to Representation – You can appoint a tax agent or lawyer to communicate with IRAS on your behalf.
- Right to Fair Treatment – IRAS must treat all taxpayers professionally and without bias.
- Right to Privacy – Your personal and financial information must be handled confidentially.
- Right to Appeal – You can object to IRAS’ audit findings within the stipulated deadline.
📋 Your Obligations During an Audit
- Provide Complete Records – Submit all requested financial documents such as invoices, receipts, and bank statements.
- Respond Promptly – Meet IRAS deadlines for information requests to avoid penalties.
- Maintain Records – Keep accounting and tax documents for at least five years as required by law.
- Be Honest – Ensure all statements made to IRAS are truthful and accurate.
- Cooperate Fully – Non-compliance or obstruction may result in higher penalties or legal action.
📄 Documents IRAS May Request
Depending on the audit type (individual, corporate, GST), IRAS may request:
- Income statements and balance sheets
- Expense records with receipts
- Payroll and CPF contribution statements
- Contracts, agreements, and tenancy documents
- Bank transaction records
⚠️ Consequences of Non-Compliance
Failure to meet your obligations during an IRAS audit can result in:
- Additional tax assessments
- Penalties up to 200% of the underpaid tax
- Prosecution for tax evasion in severe cases
💡 Best Practices for Handling an Audit
- Engage a professional tax advisor early.
- Prepare a clear and organised set of supporting documents.
- Communicate respectfully and professionally with IRAS officers.
- Ensure your tax filings are consistent year-on-year.
- Use accounting software for accurate record-keeping.
📌 Final Takeaway
An IRAS audit is not necessarily a sign of wrongdoing. By knowing your taxpayer rights and fulfilling your legal obligations, you can navigate the process with confidence, avoid unnecessary penalties, and maintain a clean compliance record.
