Tax Write-Up: How advancement in technologies help the accounting and tax sector in becoming more digitised

By Chu Ming, Ming Sheng and Rue Teng (Research and Training Department)

In this month’s publication, we look at an article from the Straits Times regarding the need to further digitise the accounting and tax sector in Singapore.

According to a report by administrative services firm TMF Group, Singapore has yet to make it compulsory for electronic invoicing, which helps combat tax evasion.

The report further suggests adopting new technologies such as artificial intelligence (AI), blockchain and cloud computing will enable faster and more accurate processing of reports. Currently, the Inland Revenue Authority of Singapore uses data analytics to identify taxpayers at risk of non-compliance and evasion.

Nevertheless, bright spots are seen in terms of adhering to international accounting standards. Singapore outshone its regional peers in terms of adhering to the International Financial Reporting Standards (IFRS), a trend seen in only 21 per cent of markets in Asia-Pacific. This helps to cut financial reporting costs for entities reporting in multiple jurisdictions and foster stability in Singapore’s financial system.

Ms. Kim Leng Siaw, managing director of Singapore at TMF, said “Singapore has done well by having robust and evolving accounting and tax policies, and we are confident that the sector’s pace of digitisation will pick up in time to come, as more companies embrace technology.”

Article: https://www.straitstimes.com/business/economy/singapore-accounting-tax-sector-needs-to-digitise-more-report

Leave a Reply

Your email address will not be published. Required fields are marked *