Stay Ahead of IRAS Audits with Voluntary Disclosure

Singapore’s Inland Revenue Authority (IRAS) encourages transparency and good tax governance. Through its Voluntary Disclosure Programme (VDP), IRAS offers taxpayers a chance to correct past tax errors without facing severe penalties. For businesses, this can mean saving millions in tax fines and protecting reputational trust.

Morrison Consultants can help all companies across various industries navigate the VDP process with confidence and precision.

What Is the IRAS Voluntary Disclosure Programme (VDP)?

• The IRAS Voluntary Disclosure Programme allows companies and individuals to disclose past tax errors, including omissions, understatements, or incorrect GST filings before IRAS discovers them through an audit or investigation.

• Whether it’s a one-off mistake or systemic oversight, early disclosure can significantly reduce penalties from the standard 200% to as low as 0% in some cases.

Why Voluntary Disclosure Matters?

• Many companies only realise the cost of non-compliance during an audit. By that time, penalties, interest, and reputational damage may already be incurred.

• Proactive disclosure through the IRAS VDP offers:

• Reduced penalties or full waiver

• No criminal prosecution (varies on a case-by-case basis)

• Preservation of corporate reputation

• Improved tax governance rating

• Peace of mind

Common Tax Errors Eligible for Disclosure

1. Omitted income from overseas subsidiaries

2. GST under-reporting or over-claiming

3. Incorrect classification of revenue vs. capital items

4. Deduction of non-qualifying expenses

5. Transfer pricing misstatements

Remarks: If these sound familiar, you may be at risk without even knowing it.

How Morrison Consultants Can Help?

• Navigating tax disclosure requires strategic handling. With numerous years of experience in advising our clients on Singapore tax regulations, Morrison Consultants can offer:

• Confidential review of tax risks and past filings

• Eligibility assessment for the IRAS VDP

• Preparation and submission of voluntary disclosure reports

• Engagement with IRAS to negotiate penalty waivers

• Ongoing tax advisory to strengthen your compliance framework

• We act swiftly and discretely for ensuring that your disclosure is well-documented, defensible, and aligned with IRAS guidelines.

Don’t Wait for an Audit, Act Now with Our Assistance

Voluntary disclosure must be made before IRAS initiates an audit or query. If you suspect errors in your corporate income tax, GST, or employment-related filings, please contact us immediately.

Ready to Make a Voluntary Disclosure?

Let Morrison Consultants guide your business through a risk-free and penalty-saving tax compliance journey.

Direct IRAS Links for Reference:

https://www.iras.gov.sg/taxes/goods-services-tax-(gst)/getting-it-right/voluntary-disclosure-of-errors-for-reduced-penalties