We refer to the letter ‘退休两年后被追讨消费税’ (Lianhe Zaobao, 3 Aug 09) by 林新发.

We have contacted Mr Lim and explained to him the reasons for recovering GST at 7 % on the value of the non-residential properties owned by him as at the last day of GST registration for his business.

When a business owner de-registers his business for GST purposes, he must account and pay IRAS the GST on the value of the business assets if it is more than $10,000 as at the last day of GST registration and if he had previously claimed input tax on these assets from IRAS. Business assets include equipment, non-residential properties or other goods or stocks that are bought locally or imported.

A GST-registered business has to ensure that GST reporting requirements are complied with before it is de-registered for GST purposes. The set of requirements is set out in the letter sent out by IRAS when IRAS approves the application for GST deregistration. The information can also be obtained from here. Businesses may also contact IRAS officers at Tel: 1800-356 8633 for clarification.