IRAS engaged stakeholders to co-create two tax frameworks to meet companies’ needs. Companies that adopt the Tax Governance Framework (TGF) and the Tax Risk Management and Control Framework for Corporate Income Tax (CTRM) will enjoy benefits including longer grace periods and waivers when they voluntarily disclose tax errors.
IRAS co-designed the frameworks with various stakeholders including the Singapore Chartered Tax Professionals (SCTP), Big 4 accounting firms and several large companies during the development phase. A pilot programme was conducted with four large corporate groups to test out the frameworks and feedback gathered was incorporated into the final frameworks.
Singtel was one of the four corporate groups that participated in the pilot programme. Mr Arthur Lang, Singtel Group Chief Financial Officer, said, “The pilot programme was a good opportunity for us to collaborate with IRAS on a proactive review of our tax risk management practices, and at the same time, offer our feedback for IRAS’ calibration of the CTRM and TGF. This holistic and structured review has affirmed the effectiveness of our tax controls and helped us to further enhance their efficacy.”
SCTP Chairman Mr Low Weng Keong also encouraged companies to invest efforts to address tax risks and liability exposures. He said, “As the pace of international tax reforms continues to accelerate, good tax governance will be increasingly expected. The principle-based frameworks, TGF and CTRM, will help companies to put in place a systematic structure that would prepare them for the future as well as reinforce Singapore as a responsible and transparent location for business.”
Find out more about the eligibility criteria and application process here.
