Corporate tax refund reconciliation should connect the bank receipt to the company’s official tax account and the reason for the credit. Do not record every payment from IRAS as a new sale. A tax-account credit, an approved refund and cash reaching the bank are different stages.
Identify the taxpayer and tax type
Check the company, tax reference, relevant assessment and bank narrative. Keep Corporate Income Tax separate from GST and other refunds. Similar payment descriptions do not establish that two receipts concern the same liability or period.
Obtain the relevant assessment or official account evidence through an authorised person. Do not provide bank credentials or make a payment in response to an unexpected message claiming that a refund is waiting.
Explain why the credit arose
The accountant should reconcile the credit to payments, assessments and any applicable adjustments. Keep the original liability and payment history available. A refund may relate to an earlier period, so the date received alone does not explain its accounting treatment.
IRAS publishes refund guidance, including electronic payment arrangements. Check the company’s actual account and registered refund route rather than assuming that a credit has already been paid out.
Example: the account shows a credit but no receipt
The tax account contains a credit while the bank reconciliation shows no corresponding money. Record the credit and investigate the refund status through the appropriate official route. Do not mark cash received merely because someone has supplied a screenshot of the credit balance.
Match the eventual receipt once
When funds arrive, link the bank entry to the relevant refund evidence and ask the accountant to clear the appropriate balance. Check for an earlier manual receipt entry so the same refund is not recorded again through a bank feed.
Retain unresolved differences
If the amount received differs from the expected credit, obtain the official explanation rather than creating miscellaneous income or expense to force agreement. Keep the assessment, account record, bank evidence and approved entries together, with any remaining query assigned to an owner.
Related practical guidance
For the surrounding records and responsibilities, see bookkeeping basics, company records to keep, bookkeeping and accounting.
Official guidance: IRAS official guidance.
Help with your company records
For accounting, bookkeeping and related compliance support, contact Raffles Corporate Services at [email protected] or WhatsApp +65 8501 7133. Tell us which records or process need attention so we can discuss the relevant next steps.
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