GST Act to be amended for extra powers

Tax enforcers may raid premises in Singapore without a warrant

SINGAPORE: Tax enforcement officers may soon be able to forcibly enter premises, arrest without warrant or conduct body searches of suspects in order to investigate serious tax crimes, according to changes proposed to the Goods and Services Tax (GST) Act.

These enhanced powers are to counteract syndicates and recalcitrant taxpayers, who are becoming more active and are employing more sophisticated strategies for tax fraud, said the Finance Ministry in a statement yesterday.

Sellers have been detected committing tax fraud by absconding with collected GST or fabricating GST refund claims.

They may refuse to hand over evidence and attempt to destroy them instead, or contact other suspects to corroborate statements, said the ministry.

“Such acts of non-cooperation affect the Iras’ effectiveness in bringing the perpetrators to justice,” said the statement.

These powers in the draft Bill will be exercised only by trained investigation officers from the Inland Revenue Authority of Singapore (Iras), the Republic’s tax authority, and used only where necessary so that investigations are not impeded.

Documents or items seized during the investigation may also be disposed of if the owner fails to collect them at the end of the investigation.

Besides increased powers to its officers, the changes also allow Iras to share information with law enforcement agencies if it decides that such information is critical for investigation or prosecution of serious crimes which may not be tax-related, such as drug dealing or corruption. — The Straits Times/Asia News Network