Post ACAP Review (PAR)
Streamlining of the ACAP Annual Review (AAR) to Post ACAP Review (PAR)
Previously, GST-registered businesses under ACAP were required to undergo an annual AAR. To reduce the compliance costs for such businesses, the AAR will be reduced from the original four to two during the 5-year “ACAP Premium” validity period. AAR will be renamed as “Post ACAP Review” (PAR).
What does the Post ACAP Review (PAR) entail?
For the first Post ACAP Review (PAR), ACAP businesses are given up to 6 months after the end of the first year of ACAP status to complete it. The second Post ACAP Review (PAR) has to be completed 6 months before the expiry of the ACAP status.
Unlike the current AAR, submission of the first and second Post ACAP Review (PAR) via the form GST F28 will be compulsory for PARs due on or after 1 January 2016. This also includes businesses which are granted extension of time to submit the first PAR on or after 1 January 2016. However, for the first PAR due on or before 31 December 2015 (i.e. applicable to businesses whose ACAP status is accorded on or before 30 Jun 2014), the form GST F28 is required to be submitted only if errors are noted. The IRAS may request to sight the GST F28 for the first PAR on a selective basis as with the current AAR system.
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While ACAP businesses are now no longer required to perform Post ACAP Review (PAR) annually, the IRAS strongly encourages businesses to continue with the annual review so as to avail themselves of the waiver of penalties for errors disclosed during the 1-year grace period under Voluntary Disclosure Programme ("VDP").