Kim Seng Heng Engineering Construction (Pte) Ltd - Tax Governance Policy Statement

Compliance with tax laws

  1. The Company's tax compliance strategy is:
    • to comply with the Singapore tax rules to the best of its ability and when in doubt, consult with the external tax professionals.
    • to ensure taxes are paid on time and in accordance with the applicable tax rules; and
    • to prepare and retain the documentation required by the tax law.
  2. Where a new tax law is introduced and its application is unclear, the Company consults with external tax professionals and where appropriate, may seek advice or advance ruling from tax authorities to ensure the Company's position is aligned with the intent of the tax law.
  3. The Company’s structure and activities are driven by business and commercial rationale. The aim is to be compliant and understand the Company’s tax responsibilities.

Governance Structure for managing tax risks

  1. The Board of Directors takes full responsibility for complying with the tax laws in Singapore. However, day-to-day management and operation of the business and tax compliance matters are delegated to the Senior Finance Manager or Finance, Head of Department, as tax is part of the finance function.
  2. Singapore tax matters are diligently managed with the assistance of external tax professionals. Decisions are supported by written documentation and where assistance from external tax professionals is obtained, a professional opinion is filed.
  3. The Board of Directors is responsible for overseeing the Company’s tax governance framework which is aligned with the best practices in accordance with the IRAS’ Tax Governance Framework. The tax governance framework is reviewed periodically in accordance with the Company’s review cycle of risk policies and operational changes.
  4. The Company has clearly documented processes and controls relating to Singapore tax compliance, which are subject to periodic reviews and are updated as needed to reflect business and legislative changes.
  5. The Company reviews the key tax risks on an ongoing basis and where there is a material issue, such matters are escalated to the Board.

Relationship with Tax Authorities

  1. The Company is committed to working in a collaborative, transparent and professional way with the Inland Revenue Authority of Singapore (“IRAS”). The Company demonstrates this by voluntarily enrolling in IRAS’ Voluntary Compliance Initiatives (e.g., the Assisted Compliance Assurance Programme, where the Company was accorded the ‘ACAP Premium’ status).
  2. The Company aims for tax certainty on arrangements it adopts. However, where tax law is unclear or subject to interpretation, consultation is made with external tax professionals or where appropriate with the IRAS.
  3. Where tax queries are raised by IRAS, the Company adopts a proactive approach and will co-operate to provide information to IRAS with the aim of resolving the queries promptly.