Ernst & Young Tax Consultant Sdn Bhd reported that tax audits carried out by the Customs Department and the Inland Revenue Board (IRB) is part of the enforcement activities done to stay focus on the tax compliance planning by the authorities.

The Customs, through the blue ocean strategy operation (Ops CBOS), which took effect on 1 September 2016 has commenced by randomly selecting 50,000 GST-registered companies for the audit purposes. Customs has deployed some 1,500 officers to carry out the comprehensive GST field audits. The next phase of the Ops CBOS is likely to commence early 2017.

The consultant companies through their tax experts has provided some tips on ways companies should get ready for GST audits. The tips include formulating an audit plan, staying updated on the GST rules and clarifying areas of uncertainty, gaining visibility over internal processes, strengthening internal controls, systems and data output, and focusing on common risk areas such as accounts payable, documentation and exports.

Source: The Star Online, 3 October 2016