Tax Dispute Prevention and Resolution

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Tax disputes rarely begin with a formal assessment. They can develop much earlier, from a complex transaction, an uncertain tax position, a change in business operations or an enquiry from the tax authority.

Identifying potential issues early can give businesses more options to manage risk, strengthen supporting evidence and avoid unnecessary escalation. Where a dispute does arise, a clear strategy from the outset can be critical to protecting the business and achieving an effective and sustainable resolution.

Our tax specialists work closely with businesses and individuals to manage dispute lifecycle proactively and efficiently. Combining technical tax knowledge with practical experience of the Inland Revenue Authority of Singapore (IRAS) reviews and dispute procedures, we help minimise disruption, manage risk and maintain constructive engagement with the tax authorities.

How we help

Managing tax risk before it becomes a dispute

The best time to consider how a tax position would withstand scrutiny is often before an enquiry begins.

Businesses may have material tax positions that involve significant judgement, complex facts or evolving tax rules. In other situations, changes to business models, transactions or historical practices may create areas of uncertainty that have not previously been examined.

We help clients identify and address potential areas of controversy before they escalate.

Our support can include:

reviewing material or potentially contentious tax positions
assessing potential tax and penalty exposure
conducting audit-readiness and dispute-risk reviews
assessing whether the available documentation and evidence support the position taken
preparing contemporaneous defence files for significant tax positions
conducting periodic health checks to identify any potential issues before the IRAS identifies it
advising on voluntary disclosures and remediation of historical issues
evaluating the use of advance rulings, advance pricing agreements and other tax certainty mechanisms
strengthening tax governance, documentation and internal processes to reduce future dispute risk

Taking action early does not necessarily mean conceding a position. It allows management to understand the strengths and weaknesses of the position, preserve relevant evidence and make informed decisions before a dispute develops.

IRAS audits and reviews

IRAS may conduct audits, reviews and investigations across a range of tax areas. These reviews often require businesses to provide detailed documentation and support for historical tax positions. Early engagement can often help businesses address issues efficiently and reduce the risk of disputes escalating.

Our team helps clients:

Understand the scope and implications of the review
Assess the technical position and potential areas of tax exposure
Identify relevant documentation, evidence and information gaps
Prepare robust responses and technical submissions
Manage communications and discussions with IRAS
Develop strategies to minimise penalties and disruption

Voluntary disclosures

Tax errors and reporting omissions can arise for a variety of reasons, including changes in business operations, evolving tax interpretations or historical compliance issues.

Where appropriate, making a voluntary disclosure to IRAS may help reduce potential penalties and demonstrate a proactive approach to compliance.

We assist clients with:

Identifying tax exposures
Reviewing historical filings and tax positions
Preparing voluntary disclosure submissions
Managing discussions with IRAS
Implementing remediation measures to strengthen future compliance

Objections, negotiations and dispute resolution

Where a taxpayer disagrees with an assessment or position taken by IRAS, the available options should be considered in the context of both the immediate dispute and its wider implications.

A disputed position may affect multiple years, recurring transactions or tax positions in other jurisdictions. For cross-border matters, an adjustment may also result in double taxation.

We assist clients in evaluating and pursuing the appropriate route to resolution.

Our support can include:

assessing the technical and factual basis of an assessment
preparing and supporting notices of objection
developing technical arguments and factual submissions
evaluating the quality and sufficiency of supporting evidence
quantifying disputed tax and associated exposures
managing discussions and negotiations with IRAS
assessing settlement and other resolution options
supporting administrative appeals
advising on Mutual Agreement Procedure and other treaty-based mechanisms for cross-border disputes
coordinating with Grant Thornton member firms where a dispute has implications in more than one jurisdiction

Our focus is on helping clients reach a technically supportable and commercially sustainable resolution while managing disruption to the business.

Why Grant Thornton

Deep understanding of the Singapore tax landscape with international reach

Our team brings extensive local experience in tax compliance and dispute resolution, enabling us to navigate complex matters with confidence.

For cross border disputes, access to the Grant Thornton international network allows us to coordinate with specialists in relevant jurisdictions and consider the dispute from a broader international perspective.

A multidisciplinary team

Complex disputes may require expertise across different areas of tax, transfer pricing, economics and financial analysis. We bring together the relevant specialists around the issues involved rather than approaching the matter through a single technical lens.

This breadth of capability has also been recognised externally. Grant Thornton Singapore was named a finalist in the 2026 International Tax Review Asia-Pacific Tax Awards for Singapore Tax Disputes Advisory Firm of the Year, Singapore Transfer Pricing Advisory Firm of the Year and Singapore Tax Advisory Firm of the Year.

Practical advice, tailored to your situation

No two tax disputes are the same. We take the time to understand your circumstances and develop solutions that align with your business. Our goal is to help you resolve issues efficiently and constructively, mitigating risks and reducing disruption to your business.

Working alongside legal counsel

Tax disputes can require different specialists at different stages.

Tax advisers bring detailed understanding of the underlying tax position, transactions, financial information and economic analysis. Legal counsel may bring complementary expertise in legal interpretation, privilege considerations, procedural strategy and advocacy.

Where legal counsel is involved, we work collaboratively as part of an integrated team. We can work with your existing legal advisers or, where you do not have an existing legal adviser, draw on our established relationships with experienced independent tax lawyers and facilitate introductions to cousel with the appropriate expertise for the matter.

FAQs

When should I involve a tax dispute adviser?

Ideally, before substantive positions are communicated to the tax authority. Early involvement allows the relevant facts, technical arguments, supporting evidence and wider implications to be assessed before the business becomes committed to a particular response or strategy.

What should I do if I receive an IRAS audit letter?

It is important to understand the scope of the review and the underlying issues that IRAS may be examining. Responses should be accurate, complete and supported by appropriate documentation, but it is also important to consider whether the information requested could have implications for other tax positions, periods or jurisdictions.

Can I challenge an IRAS tax assessment?

Yes. Taxpayers may object to an assessment where they believe the tax position is incorrect, provided the objection is submitted within the prescribed timelines.

What is a voluntary disclosure?

A voluntary disclosure involves proactively notifying IRAS of tax errors or omissions before they are identified by the tax authority.

How long does a tax dispute take to resolve?

The timeline will depend on the complexity of the issues involved, the availability of supporting documentation and the extent of engagement required with IRAS.

Can tax disputes be prevented?

Not every dispute can be avoided. However, businesses can reduce controversy risk by identifying material tax issues early, maintaining appropriate contemporaneous evidence and documentation, reviewing potentially contentious positions and, where appropriate, using certainty mechanisms such as advance rulings or Advance Pricing Agreements.

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