Taxman On The Audit Run

We would like to alert clients of the recent stepped up audits by IRAS on past tax filings and relevant financial statements. Such queries are generally raised via IRAS' desk or field audits.

For desk audits, IRAS would issue tax query letters concerning past tax filings of a taxpayer, requiring a satisfactory reply within a given timeframe. For field audits, IRAS would usually give the taxpayer advance notice of its intention to conduct a field tax audit, informing the taxpayer of the proposed date of field audit and the types of records for review. Typically, IRAS gives 2 to 3 weeks' advance notice to the taxpayer to prepare for the field audit.