Audits and Investigations on Missing Trader Fraud

Key requirements

Missing Trader Fraud uses real or fictitious transaction chains where an upstream seller collects GST but does not remit it, while downstream businesses claim refunds. Borrowed identities and offers of low-risk guaranteed profits can draw legitimate people into the chain. IRAS may withhold suspect refunds, deny claims for lack of genuine supply or under the Knowledge Principle, cancel registration or impose protective conditions. A 10% surcharge can apply to input tax denied because the business should have known of the fraud. The page’s decided appeals illustrate that invoices, testimony and photos do not necessarily overcome serious inconsistencies about actual goods and transactions. Verify counterparties, commercial purpose, goods movement and payments, and retain the checks. Registration or payment of an invoice alone is insufficient proof of a genuine purchase.