Accounting rules follow the accounting & auditing standards and are different from tax rules which are governed by the Income Tax Act. There are adjustments to be made from the accounts in order to comply with the tax rules for tax filing purposes and businesses frequently overlook these adjustments. IRAS has penalized businesses frequently for incorrect tax filing as a result of their ignorance on such adjustments necessary to comply with the tax rules.
When an accounting firm provides accounting or book-keeping services, it is important to understand the tax rules and record those transactions which require tax adjustment in a separate account or flag them up. This is to facilitate tax adjustments by tax professionals and to comply with the tax rules. Frequently, the accounting records are not properly annotated for tax adjustments and as such, the company’s tax filing is inaccurate.
The accounting firm must always bear in mind that accounting service and tax service are closely linked and communication with accounting staff on tax requirement is always very important to ensure accuracy of tax filing.
At A Tax Advisor Pte Ltd, our team of qualified accountants, tax advisors and practitioners would assist in you in aligning your accounting compliance with tax compliance. When we prepare your accounts, we bear in mind the necessary tax adjustments to comply with tax filing requirements. If you would like to know more about our services or would like to speak to our tax professionals, please contact us for more information.