What is ACAP?

In line with the growing focus of tax authorities on tax governance and risk management, the Assisted Compliance Assurance Programme (ACAP) was introduced by the IRAS to encourage businesses to set up a robust GST control framework to ensure the proper accounting of GST on business transactions.

The aims of the ACAP can be broken down into the following distinct areas:

  • Facilitate GST- registered business to set up a robust GST control framework
  • Encourage businesses to Undertake a holistic review of its system processes and capabilities
  • Identify, assess and mitigate GST risks
  • Ensure correct GST reporting on an ongoing basis

Upon completion of the ACAP review by an independent ACAP reviewer of the organisation’s Entity Level controls, Transaction Level controls and GST Reporting Level controls, the IRAS will accord the business an ACAP status.

The status granted is dependent on the level and robustness of the internal controls reviewed and comprise “ACAP Premium” (lasts for 5 years) or “ACAP Merit” (lasts for 3 years) status. The status also represents a step-down of IRAS GST audits on the business.

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