Does IRAS have a Voluntary Disclosure Programme (“VDP”) for GST errors?
Yes. IRAS operates a Voluntary Disclosure Programme (“VDP”) that allows businesses to voluntarily disclose errors made in their GST returns.
What is the purpose of the GST Voluntary Disclosure Programme?
The VDP encourages taxpayers to voluntarily and promptly correct GST errors and omissions before they are identified by IRAS.
What are the conditions to qualify for the VDP?
To qualify for the VDP, the disclosure should generally be:
* Accurate
* Complete
* Timely
* Self-initiated
What are the benefits of making a voluntary disclosure?
Where the disclosure qualifies under the VDP, IRAS may reduce the penalties imposed on the GST errors disclosed. In certain situations, reduced penalties of 5% may apply instead of penalties of up to 200% if the errors are discovered during an IRAS audit.
