Goods and Services Tax (Amendment) Bill

The Bill introduces seven amendments to the Goods and Services Tax Act, with five arising from a system review and two aimed at facilitating IRAS administration, following a public consultation process.
Key changes empower the Comptroller of GST to seize goods and arrest persons for fraudulent Tourist Refund Scheme claims, and allow IRAS to disclose anonymized taxpayer data for statistical research and share information on professional misconduct with relevant bodies.
Administrative facilitations include transferring GST obligations for imported goods, specifying repayment responsibility for non-compliance with GST schemes, and clarifying the definition of "refine" for precious metals in specific schemes.
The amendments also enable IRAS to share information with law enforcement for money laundering investigations and deduct tax arrears from government payments like the Wage Credit Scheme, extending these provisions to other IRAS-administered Acts.

Order for Second Reading read.

Mdm Speaker, I beg to move, "That the Bill be now read a Second time".

The Goods and Services Tax (Amendment) Bill 2013, or the GST Bill for short, comprises seven amendments. The first five amendments arose from our ongoing review of the Goods and Services Tax (GST) system, while the other two amendments are to facilitate IRAS' administration of existing policies.

The draft Bill was released for public consultation in August this year. MOF has evaluated the feedback received and where relevant, incorporated the

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feedback into the Bill. I will now explain the amendments.

First, clauses 3 and 8 allow the Comptroller of GST to seize goods and arrest persons in situations where fraudulent claims under the Tourist Refund Scheme are suspected. The enforcement powers of the Comptroller are being strengthened to enable him to carry out more thorough investigations and effectively prosecute persons who have made fraudulent claims.

Second, we will refine the scope of taxpayer information disclosure. Under clause 2(b), IRAS will be allowed to disclose anonymised information to the Government, including Statutory Boards, for statistical or research purposes. This gives the Government access to statistical data that is important for policy formulation. For example, a Statutory Board can request for anonymised GST data to analyse the impact of GST on various industries.

And, secondly, share information relating to professional misconduct with a relevant professional body, for example, the Public Accountants Oversight Committee. This aims to safeguard public interest by facilitating disciplinary actions to be taken by professional bodies.

Both amendments are consistent with the existing provisions of the Income Tax Act.

The other three GST amendments are generally meant to facilitate tax administration:

Clause 5 allows the GST obligations of an existing local agent, who imported goods on behalf of an overseas person, to be transferred to a newly-appointed local agent.

Clause 4 will facilitate the administration of GST schemes such as the Approved Refiner and Consolidator Scheme, by providing that regulations can specify who should repay GST in situations where there is non-compliance with the conditions of a GST scheme. For example, if a person had purchased goods GST-free under a scheme, and yet did not comply with the conditions of the scheme, regulations can require the person to pay GST.

Clause 6 clarifies the definition of the term "refine" used in the Approved Refiner and Consolidator Scheme, by specifying that "refine" includes changing precious metals from one form to another, or refining precious metals to a

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different level of purity.

The final two amendments are a consequence of other policy changes: firstly, the designation of money laundering of proceeds of serious tax crimes as a criminal offence, and secondly, the introduction of the Wage Credit Scheme which was announced in Budget 2013.

Clause 2(a) allows IRAS to directly share with the Commercial Affairs Department and the Singapore Police Force information that is needed for their domestic investigations of money laundering of proceeds of serious tax crimes.

Clause 7 gives IRAS the power to deduct tax arrears from Government payments to taxpayers, for instance, payments given to businesses under the Wage Credit Scheme.

Lastly, clause 9 extends both amendments above to the other Acts that IRAS administers.

Mdm Speaker, I beg to move.

Question put, and agreed to.

Bill accordingly read a Second time and committed to a Committee of the whole House.

The House immediately resolved itself into a Committee on the Bill. – [Mrs Josephine Teo].

Bill considered in Committee.

[Mdm Speaker in the Chair]

Clause 1 ordered to stand part of the Bill.

Clause 2. Senior Minister of State.

Clause 2 –

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Mdm Speaker, I beg to move the amendment* standing in my name as set out on the Order Paper Supplement.

*The amendment reads as follows:

In page 2, line 28: to leave out from "this", and insert –

Amendment agreed to.

Clause 2, as amended, ordered to stand part of the Bill.

Clauses 3 to 9 inclusive ordered to stand part of the Bill.

The Schedule. Senior Minister of State.

The Schedule –

Mdm Speaker, I beg to move the amendment* standing in my name as set out on the Order Paper Supplement.

[(proc text) *The amendment reads as follows: (proc text)]

[(proc text) In page 8: to leave out from "this" in paragraph (b) in the Second column against item 1(a), and insert – (proc text)]

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This is a related amendment to section 6 of the Income Tax Act. Similar to the amendment to clause 2, this provision ensures the confidentiality of any information shared by IRAS with the Commercial Affairs Department and the Singapore Police Force.

Amendments agreed to.

The Schedule, as amended, ordered to stand part of the Bill.

Bill reported with amendments, read a Third time and passed.

The Bill introduces seven amendments to the Goods and Services Tax Act, with five arising from a system review and two aimed at facilitating IRAS administration, following a public consultation process.
Key changes empower the Comptroller of GST to seize goods and arrest persons for fraudulent Tourist Refund Scheme claims, and allow IRAS to disclose anonymized taxpayer data for statistical research and share information on professional misconduct with relevant bodies.
Administrative facilitations include transferring GST obligations for imported goods, specifying repayment responsibility for non-compliance with GST schemes, and clarifying the definition of "refine" for precious metals in specific schemes.
The amendments also enable IRAS to share information with law enforcement for money laundering investigations and deduct tax arrears from government payments like the Wage Credit Scheme, extending these provisions to other IRAS-administered Acts.

The Bill introduces seven amendments to the Goods and Services Tax Act, with five arising from a system review and two aimed at facilitating IRAS administration, following a public consultation process.
Key changes empower the Comptroller of GST to seize goods and arrest persons for fraudulent Tourist Refund Scheme claims, and allow IRAS to disclose anonymized taxpayer data for statistical research and share information on professional misconduct with relevant bodies.
Administrative facilitations include transferring GST obligations for imported goods, specifying repayment responsibility for non-compliance with GST schemes, and clarifying the definition of "refine" for precious metals in specific schemes.
The amendments also enable IRAS to share information with law enforcement for money laundering investigations and deduct tax arrears from government payments like the Wage Credit Scheme, extending these provisions to other IRAS-administered Acts.

Order for Second Reading read.

Mdm Speaker, I beg to move, "That the Bill be now read a Second time".

The draft Bill was released for public consultation in August this year. MOF has evaluated the feedback received and where relevant, incorporated the

Page: 94

feedback into the Bill. I will now explain the amendments.

Both amendments are consistent with the existing provisions of the Income Tax Act.

The other three GST amendments are generally meant to facilitate tax administration:

Clause 5 allows the GST obligations of an existing local agent, who imported goods on behalf of an overseas person, to be transferred to a newly-appointed local agent.

Page: 95

different level of purity.

Clause 7 gives IRAS the power to deduct tax arrears from Government payments to taxpayers, for instance, payments given to businesses under the Wage Credit Scheme.

Lastly, clause 9 extends both amendments above to the other Acts that IRAS administers.

Mdm Speaker, I beg to move.

Question put, and agreed to.

Bill accordingly read a Second time and committed to a Committee of the whole House.

The House immediately resolved itself into a Committee on the Bill. – [Mrs Josephine Teo].

Bill considered in Committee.

[Mdm Speaker in the Chair]

Clause 1 ordered to stand part of the Bill.

Clause 2. Senior Minister of State.

Clause 2 –

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Mdm Speaker, I beg to move the amendment* standing in my name as set out on the Order Paper Supplement.

*The amendment reads as follows:

In page 2, line 28: to leave out from "this", and insert –

Amendment agreed to.

Clause 2, as amended, ordered to stand part of the Bill.

Clauses 3 to 9 inclusive ordered to stand part of the Bill.

The Schedule. Senior Minister of State.

The Schedule –

Mdm Speaker, I beg to move the amendment* standing in my name as set out on the Order Paper Supplement.

[(proc text) *The amendment reads as follows: (proc text)]

[(proc text) In page 8: to leave out from "this" in paragraph (b) in the Second column against item 1(a), and insert – (proc text)]

Page: 97

Amendments agreed to.

The Schedule, as amended, ordered to stand part of the Bill.

Bill reported with amendments, read a Third time and passed.

The Bill introduces seven amendments to the Goods and Services Tax Act, with five arising from a system review and two aimed at facilitating IRAS administration, following a public consultation process.
Key changes empower the Comptroller of GST to seize goods and arrest persons for fraudulent Tourist Refund Scheme claims, and allow IRAS to disclose anonymized taxpayer data for statistical research and share information on professional misconduct with relevant bodies.
Administrative facilitations include transferring GST obligations for imported goods, specifying repayment responsibility for non-compliance with GST schemes, and clarifying the definition of "refine" for precious metals in specific schemes.
The amendments also enable IRAS to share information with law enforcement for money laundering investigations and deduct tax arrears from government payments like the Wage Credit Scheme, extending these provisions to other IRAS-administered Acts.

Goods and Services Tax (Amendment) Bill

Summary

Questions Identified

Full Transcript

The Senior Minister of State for Finance (Mrs Josephine Teo)

[Mdm Speaker in the Chair]

The Chairman

Mrs Josephine Teo

The Chairman

Mrs Josephine Teo

Mrs Josephine Teo

Summary

Questions Identified

Goods and Services Tax (Amendment) Bill

Summary

Questions Identified

Full Transcript

The Senior Minister of State for Finance (Mrs Josephine Teo)

[Mdm Speaker in the Chair]

The Chairman

Mrs Josephine Teo

The Chairman

Mrs Josephine Teo

Mrs Josephine Teo

Summary

Questions Identified