Publication Type

News Article

Version

acceptedVersion

Publication Date

9-2020

Abstract

Missing Trader Fraud (MTF) is a problem that has plagued tax authorities around the world. It is a form of fraud by which syndicates make use of the Goods and Services Tax (GST) regime to defraud tax authorities. The recent Draft Goods and Services Tax (Amendment) Bill 2020 proposes a new framework to deal with the problem of MTF. It is expected to come into effect on Jan 1, 2021. Under the proposed framework, a taxpayer's input tax claims will be denied in cases where it knew or "should have known" that the supply made to the taxpayer was part of an arrangement to cause loss of public revenue. Pursuant to these proposed amendments, taxpayers would generally have to ensure that they are not in any way connected to a fraudulent arrangement leading to loss of public revenue. They would be well-advised to take all reasonable steps and scrutinise their transactions.

Discipline

Tax Law

Research Areas

Corporate, Finance and Securities Law

Publication

Business Times

ISSN

1733-8179

Publisher

SPH

Embargo Period

4-21-2021

Copyright Owner and License

Authors

Included in

Tax Law Commons

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