Fighting 'Missing Trader' GST Fraud in Singapore

The Business Times, 30 September 2020

4 Pages Posted: 23 Mar 2021

See all articles by Liu Hern Kuan

Liu Hern Kuan

Inland Revenue Authority of Singapore

Vincent Ooi

Singapore Management University - School of Law; Singapore Management University - Centre for AI & Data Governance

Date Written: September 30, 2020

Abstract

In the Draft Goods and Services Tax (Amendment) Bill 2020 (the “Draft Bill”), Singapore proposes a new framework to deal with the problem of MTF. The approach is neatly summarised by a document released by the Singapore Ministry of Finance: “Annex: Proposed Changes to the Goods and Services Tax Act”, of which one point is of particular interest. The document states that the proposed legislative amendments will “allow the Comptroller of GST to deny a GST-registered business’ input GST claim, if the business knew or should have known that his purchase was part of or connected with a fraudulent arrangement. The burden of proving that the business knew or should have known of the fraudulent arrangement lies on the Comptroller, with the standard of proof being the balance of probabilities. This is similar to the approach taken in the United Kingdom (“UK”) and the European Union to safeguard tax revenue.”

Keywords: Carousel Fraud, VAT, GST, Missing Trader Fraud, Singapore Tax

Suggested Citation

Hern Kuan, Liu and Ooi, Vincent, Fighting 'Missing Trader' GST Fraud in Singapore (September 30, 2020). The Business Times, 30 September 2020 , Available at SSRN: https://ssrn.com/abstract=3785925

Liu Hern Kuan

Inland Revenue Authority of Singapore ( email )

55 Newton Road
Revenue House
Singapore, 307987
Singapore
+65 6351 2030 (Phone)
+65 6351 2077 (Fax)

HOME PAGE: http://www.iras.gov.sg

Vincent Ooi (Contact Author)

Singapore Management University - School of Law ( email )

55 Armenian Street
Singapore, 179943
Singapore

HOME PAGE: http://vincentooi.com

Singapore Management University - Centre for AI & Data Governance ( email )

55 Armenian Street
Singapore
Singapore

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