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The Tax Risk Management & Control Framework for Corporate Income Tax (CTRM) is a voluntary compliance initiative that provides an avenue for companies to review and improve their current internal controls and risk management process.
Under the CTRM, IRAS will:
1.
Apply a one-time waiver of penalties
A one-time waiver of penalties for voluntary disclosure of corporate income tax and withholding tax errors made within three years from the award of the CTRM status and a further three years upon renewal of the CTRM status.
2.
Step-down on compliance audit
The IRAS will discuss and identify key risk areas and issues after the CTRM application is approved so as to calibrate their compliance audit review for the next three Years of Assessment.
Who should participate in the CTRM and why
Participation in the CTRM builds shareholder trust and brings credibility to businesses looking to raise funds or exploring mergers and acquisitions in the future.
Businesses that would benefit most from obtaining CTRM status are publicly listed or multinational companies with complex structures and business models.
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The corporate income tax controls framework
There are three levels that businesses must implement as part of the corporate income tax controls framework:
|
Level of Control |
Objectives and Features of Control |
|
Tax Governance Structure |
Demonstrate that the Board and senior management have implemented a robust Corporate Income Tax (CIT) risk management framework and policies and oversee the entity's CIT matters. |
|
Entity-Level Controls |
Enable senior management to maintain oversight over CIT compliance risks so that any issue can be dealt with in accordance with the tax risk management protocols. |
|
Tax Reporting Controls |
Ensure complete and accurate extraction of tax data compiled for CIT reporting for timely submission of tax returns and responses to IRAS's enquiries. |
Prerequisites to participate in the CTRM
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![Prerequisites to participate in the CTRM]()
Implemented the key controls across all three levels: Tax Governance Structure, Entity Level Controls, and Tax Reporting Controls
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![Prerequisites to participate in the CTRM]()
Unqualified opinion on audited financial statements for the immediate past three years.
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![Prerequisites to participate in the CTRM]()
No ongoing CIT audits or investigations by the IRAS.
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![Prerequisites to participate in the CTRM]()
Good tax compliance records over the last three years.
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![Prerequisites to participate in the CTRM]()
No outstanding taxes owed to IRAS as at application date.
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![Prerequisites to participate in the CTRM]()
Appointed an accredited CTRM Reviewer to conduct the CTRM Review.
Why Grant Thornton
1.
Accredited and experienced
Our team comprises accredited tax professionals who have successfully helped clients achieve tax efficiencies while staying compliant with the regulations.
2.
Value adding
Our experts are invested in understanding our clients’ unique requirements and supporting them to achieve their goals and objectives. We are committed to ensuring that our clients receive the value they are looking for.
3.
Journeying with you, at your speed
Issues arise, goals evolve, needs change. Our flatter structure and agile approach quickly adapts to your way of working.
Eng Min Lor
Partner - Corporate Tax
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