On 3 November 2023, the Ministry of Finance (“MOF“) and the Inland Revenue Authority of Singapore (“IRAS“) launched a public consultation to review proposed legislative amendments to the Inland Revenue Authority of Singapore Act 1992 (“IRAS Act“) by way of the draft IRAS (Amendment) Bill (“Draft Bill“). Under the Draft Bill, IRAS will take on the administration of broad-based grants to businesses.
The proposed amendments are as follows:
(a) Formally appoint IRAS as administrator of Scheduled public schemes (as set out in the new Fifth Schedule) for and on behalf of the Government or a statutory body (section 6(1)(ea))
- Examples of the Scheduled public schemes include the wage credit scheme, Jobs Support Scheme, SkillsFuture Enterprise Credit, foreign worker levy rebate, and the Small Business Recovery Grant. The full list is set out in the Fifth Schedule.
(b) Introduce offences for misrepresentation of information to deter fraud and abuse of enterprise grants. Part 5A of the Draft Bill introduces three tiers of offences for (i) giving information that is false or misleading in a material particular; or (ii) omitting forms or documents from any application material particular, for the purposes of obtaining a public grant or assisting a person to wrongfully obtain a public grant:
- for doing so (i.e. a strict liability offence) – the penalty will be equal to the grant given or that would have been given (section 17F(1) and (2));
- for doing so without any reasonable excuse or negligently – the penalty will be equal to two times the grant given or that would have been given (section 17F(3) and (4)); and
- for doing so wilfully – the penalty will be equal to three times the grant given or that would have been given (section 17F(5) and (6)).
Additionally, in all three offences, persons convicted will also be subject to fines and imprisonment terms accordingly. The penalties provide for the recovery of wrongly received/awarded grants as a debt due to the Government (see section 17B and the explanatory statement).
(c) Provide IRAS with information-gathering and enforcement powers for audit and investigation of offences relating to broad-based enterprise grants, including potential violations such as misrepresentation of information and fraud. Such powers include entering buildings and places, requesting for information and documents as well as carrying out investigations and examining witnesses.
Any person who, without “reasonable excuse”, fails to comply with the request for documents and/or information, or interferes with authorised investigations, will be guilty of an offence and liable to pay fines and/or imprisonment terms (see sections 17G and 17H).
(d) Introduce other administrative amendments, including granting IRAS the power to compound offences under the IRAS Act and protecting the identify of an informer of any offence under the new Part 5A from being disclosed. Additionally, it provides for the power for certain authorised persons to effect arrests.
The consultation ran from 3 November 2023 to 19 November 2023. A summary of comments and responses will be published on the MOF website in December 2023.
Click on the following link for more information:
- MOF Public Consultation titled “Public Consultation on Proposed Inland Revenue Authority of Singapore (Amendment) Bill” (available on the MOF website at www.mof.gov.sg)
