Successful Tax Settlement with IRAS for Our Client

Case Highlight: Resolving a Complex Tax Case with the period of engagement from 2017 to 2024

When a local F&B outlet came under sudden scrutiny following a regulatory visit in 2017, they faced potential tax exposures stemming from historical reporting gaps and outdated business structuring. With limited in-house accounting expertise and prior records prepared based on estimates, the company struggled to substantiate its reported income. That is when our team stepped in to assist. 

Initial Findings and Challenges

• Financial records from YA2013 to YA2017 were incomplete and inconsistent.

• Due to a lack of professional accounting guidance, annual revenues were understated, and the business was thus kept below the GST registration threshold.

• Sales were initially attributed to 3 outlets operated by separate individuals with close relationships; however, IRAS rejected this claim and determined that the outlets were collectively operating as a single business entity. 

• The business structure failed to reflect centralized management, thereby complicating GST and income tax filings.

• Inland Revenue Authority of Singapore (IRAS) ultimately rejected the claim that outlets were independent and concluded that the company would be accountable for all operations.

Strategic Corrective Measures

From mid-2017 onwards, Morrison Consultants took charge of the engagement. We implemented a comprehensive strategy to:

✔  Reconstruct historical sales using transactional records

✔  Clarify operational arrangements to establish proper entity classification

✔  Register for GST from the correct effective date

✔  Rectify payroll reporting for multiple years

We prepared the detailed working papers and documentation to show good faith and justify past discrepancies.

Successful Resolution and Outcome

Through persistent negotiations with IRAS, we:

✔  Secured a significant reduction in estimated assessments

✔  Gained acceptance of revised figures for YA2018, YA2019, and YA2022

✔  Finalized tax assessments without further objections

Our efforts contributed to cut the potential tax exposure by nearly 50%.

Why It Matters?

✔  This case highlights the value of early intervention, accurate structuring, and professional support in resolving tax issues.

✔  Businesses facing audits or legacy compliance risks can benefit significantly from expert guidance and documentation.

Disclaimer / Confidentiality Note

All details shared in this article are extracted from a real engagement which has been completed by Morrison Consultants. Client identity and specific information must be anonymised to maintain strict confidentiality. The content is for informational purposes only and does not constitute tax advice.

Need Help with Tax Audits or Investigations?

At Morrison Consultants, you’re not just getting advice. Instead, you’re getting battle-tested expertise as our team includes Qualified or Chartered Accountants and Accredited Tax Advisors who are awarded by Singapore Chartered Tax Professionals (SCTP). In other words, we are professionals who possess in-depth knowledge of Singapore tax law and stay consistently updated with its latest developments.

Whether you’re facing a complex regulatory inspection, an unexpected tax investigation, or urgent compliance issues, we offer end-to-end support from reconstructing historical financial records to negotiating directly with tax authorities. With Morrison, you’re backed by experts who know exactly how to protect your business and guide you to the best possible resolution.

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Morrison’s Proven Tax Advisory Approach for All IRAS Investigations & Audit Engagements

Every tax engagement is unique, but our methodology is consistently structured, professional, and results-driven. Our typical process includes:

1. Initial Case Assessment: Reviewing notices, prior submissions, and client records to understand the scope and risk areas after having the first round of meeting with any potential clients.

2. Fact-Finding, Data Collection and Documentation Review: Conducting deep dives into financial statements, transactions, and business models to identify gaps and inconsistencies.

3. Stakeholder Coordination: Working closely with business owners, finance staff, or other related persons to obtain relevant information and historical context.

4. Reconstruction & Reconciliation: Rebuilding financial records, estimating missing data, and aligning figures with operational realities.

5. Regulatory Liaison: Acting as the intermediary with IRAS to present findings, respond to queries, and negotiate where appropriate.

6. Risk Mitigation & Voluntary Disclosure (if applicable): Advising on corrective steps and voluntary disclosure opportunities to reduce penalties and enhance tax compliance in the long run.

7. Resolution & Closure: Securing agreement on revised assessments, guiding clients through payment or objection processes, and helping to restore compliance confidence.

 Please note that our tax advisory is tailored throughout the engagement process to secure the best interest of our client. This structured process ensures that each engagement is settled with the highest level of professionalism, discretion, and strategic insight.

At Morrison Consultants, we provide comprehensive corporate advisory services to support businesses at every stage of their journey. From expert guidance on company incorporation to handling complex tax advisory matters, our team ensures that your business operations run smoothly and efficiently. Call us today to find out how we can help your business stay compliant and grow with confidence.