Singapore missing trader fraud GST liabilities
- Oct 9, 2020 | Richard Asquith
Following a public consultation, Singapore has brought forward legislation (Goods and Services (GST) (Amendment) Bill 2020) to make traders liable for missing VAT if they should have been able to detect suspicious behaviour and fraud by a counter party. This is an attempt to limit the tax losses of missing trader fraud.
Were the tax office finds that a customer should have been able to identify a suspicious fraud, and there is a GST loss, they will be unable to deduct the input GST suffered against their own return. They may also be liable to a 10% surcharge penalty.
Examples of suspicious transactions are heavily discounted prices or large supplies being offered by new, unknown suppliers.