Are Malaysian companies being too laid back with MFRS 15?

I’ve been attending a few seminars recently in Malaysia on various current issues, such as the new Companies Act 2016, the Finance Act 2017 as well as transfer pricing developments. I was able to touch base with a few fellow delegates and we talked in general about the challenges facing their companies in this day and age. One topic that somehow kept being brought up was the implementation of MFRS 15 Revenue from Contracts with Customers.

I was rather astonished that most of their respective companies had not even started planning for it, despite the fact that we are now only nine months away. If you remember, MFRS 15 was originally slated to come into effect on 1 January 2017 before it got pushed back to 1 January 2018. Why was it pushed back? The International Accounting Standards Board acknowledged the complexity of the revenue standard and to allow more time for companies to properly implement it. Yet here we are, at the end of the first quarter of 2017, and many have still not started.

GST Audit Frameworks and ‘Devices’ - The RMCD pushes on

The Malaysia GST environment continues to evolve, as the Royal Malaysian Customs Department (RMCD) pushes on in refining its rules, processes and policies. Budget 2017 saw various amendments to tighten up the GST Framework, dealing with such matters as the GST treatment with regards to free zones, the recovery of tax from persons leaving Malaysia, an increase in the penalty rate for unpaid taxes, and a change in definition on the time of supply for imported services.

Outside of Budget 2017, one of the more significant developments in the past year has been the GST Audit Framework document published June last year by the RMCD. GST audits has been a hot topic amongst accountants and tax agents of late, especially with the RMCD identifying 50,000 companies that will be subject to the first phase of GST audits.

The GST Audit Framework document discusses GST audits in detail, laying out key information such as the full process of the audit, documents required, and the rights and responsibilities of the auditee.

Will GST rates increase in Singapore?

The Singapore Budget 2017 debates continue to rumble on in Parliament, and should finish this Friday. There were many valid points raised and the discussion has been lively, and not without controversy.

For instance, one of yesterday's debates seemed to picture the Government indulging in evasive tactics when questioned about a possible GST hike in the near future. Low Thia Khiang, leader of the Workers' Party, voiced concern as to how would all the planned expenditure for healthcare and infrastructure in the coming years be funded.

Lawrence Wong, the second Minister for Finance, chose his words carefully in his response, and, while insisting that the Government is exploring all possible options, did not flat out dismiss the possibility of a GST rate increase.