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.

Penalty waiver for early participation in ACAP

• Full waiver of penalties identified during the ACAP review over previous 5 years’ errors, if application to participate in the ACAP is made before 31 March 2024.

Other benefits for participation in ACAP

• Step-down of IRAS GST audits unless significant anomalies noted in GST returns
• Demonstrates commitment towards good tax governance and compliance
• Provides Senior Management a ‘snap-shot’ view of the company’s business processes and control frameworks and existing gaps / areas of improvement
• Expeditious GST refunds
• Dedicated team from IRAS for assistance on any GST matters
• Auto-renewal of any GST schemes
• Possibility to identify and recover GST overpaid/underclaimed to/from IRAS over the previous 5 years

Grant Thornton is an IRAS-approved ACAP reviewer with a dedicated team of accredited GST specialists ready to advise and support you on the ACAP. Over the years, we have advised and assisted numerous clients, across a spectrum of industries, obtain “ACAP Premium” status, which is the highest ACAP accreditation possible.

One of the key service differentials at Grant Thornton is that we listen to you and will work with you and your teams in a proactive way, with the primary aim to achieve the best outcome for you.

The key areas we can assist you are:

• Determine whether your business is eligible and ready for the ACAP
• Help prepare you for the ACAP review
• Conduct the ACAP review as an independent and accredited reviewer
• Advise you on design and implementation of new internal controls and or processes to close the gaps that may exist in your current business processes that are subject to the ACAP review.
• Be your advisor and contact with the IRAS on seeking clarification of uncertain matters that are identified in the course of the ACAP review.