KELANA JAYA: What is the Goods & Services Tax (GST) impact when company has a change of Accountants or person-in charge of Goods & Services Tax (GST).

KAC Advisory Services Sdn Bhd’s director cum GST consultant, Derek Wong explained that GST records and documentation may be lost when the person in-charge left without proper hand over. He emphasised that unlike annual audit, the records and document may be kept aside after the statutory audit. Customs department audit team may carry out audit any time within 6 years period and request for document within a short period, normally within a few weeks’ time.

Failing to provide the requested information and/ or document within the stipulated time period, the company may be prosecuted under Section 93 (1) of the GSTA 2014.

What action should be taken?

Derek highlighted that currently there are many companies being audited and prosecuting soon due to lack of information, records and GST mistakes made since 1st April 2015.

“Generally, Customs audit team emphasized on good compliance and not partial compliance”. However, until to date there are still many registrants who are unable to meet simple compliance such as submitting return and making full payment on time.

He would suggest company to carry out a “exit audit” before the Accountants or person-in charge of Goods & Services Tax (GST) leaves the organization to ensure his/ her roles and responsibilities was carried out properly during his term of engagement. If any material mistake discover, correction and prevention action can be taken on a timely basis. If possible with the help of the person leaving as he is also responsible for the disclosure.

KAC has undertaken review and audit assignments for a number of clients and feedback is encouraging.