“New legislation formalizes IRAS’ role as a grant disbursement agency and enhances its ability to investigate and recover funds.”
The Inland Revenue Authority of Singapore (IRAS) has been granted expanded powers with the passing of the Inland Revenue Authority of Singapore (Amendment) Bill on February 16, 2024. These new powers enable IRAS to take on a broader role in administering government grants and investigating fraud and abuse related to disbursed funds.
Previously, IRAS was primarily responsible for tax administration. However, with the new amendments, the authority’s role has now been formalized as a government grant disbursement agency. This change allows IRAS to oversee scheduled public schemes and distribute funds to businesses more effectively.
In addition to its new grant-related responsibilities, the bill also grants IRAS the authority to investigate cases of fraud and misuse of grant funds. The agency can now conduct inspections, seize documents, and even make arrests as part of its enforcement measures. This marks a significant shift, as IRAS did not previously have the ability to directly investigate fraudulent activities related to government grants; such cases were referred to the police.
Second Minister for Finance, Chee Hong Tat, highlighted that IRAS had been disbursing large-scale grants for over a decade, noting the substantial S$27.6 billion in grants distributed to over 150,000 businesses during the COVID-19 pandemic. Last year, it allocated S$4.6 billion to around 120,000 companies.
With the new powers, IRAS can take direct action against individuals or organizations that interfere with investigations or fail to comply with its requirements. Offenders can face up to 12 months in jail or fines of up to S$10,000.
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