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Exception Handling Guide

Master tax exceptions with our detailed matrix and remediation playbooks.

Exceptions Matrix

Exception TypeRequired ActionEscalation TriggerEvidence Required
Large Variance
Compare YoY, investigate causeSenior review if exceeds 30%Supporting invoices, contracts
Related Party Transaction
Verify transfer pricing documentationPartner approval requiredTP study, agreements, invoices
Foreign Income
Check exemption eligibilityTax manager reviewForeign tax certificates, remittance proof
Capital vs Revenue
Apply IRAS guidelines testTechnical team consultationPurchase agreements, usage documentation
GST Discrepancy
Reconcile with GST returnsImmediate if exceeds $10,000GST F5, purchase listings

Sample Reviewer Annotations

Entertainment Expenses - $45,000

Apply 50% restriction per S14(1)(e). Separate analysis required for overseas portion.

Requires Adjustment

Section 14Q Claims - $120,000

Renovation completed within qualifying period. Documentation complete.

Approved

Related Party Interest - $200,000

Missing transfer pricing documentation. Escalate to partner for review.

Escalated

Playbooks for Common Exceptions

Entertainment Expenses

  1. 1.Identify all entertainment GL codes
  2. 2.Separate local vs overseas entertainment
  3. 3.Apply 50% cap for local entertainment
  4. 4.Fully disallow overseas entertainment
  5. 5.Document business purpose for each claim

Medical Expenses

  1. 1.Segregate portable vs non-portable benefits
  2. 2.Check employee medical claim limits
  3. 3.Verify insurance vs direct reimbursements
  4. 4.Apply per-employee caps where applicable
  5. 5.Ensure proper documentation exists

Motor Vehicle Expenses

  1. 1.Identify vehicle type (S-plate, Q-plate, etc)
  2. 2.Apply private use restriction
  3. 3.Check COE and registration timing
  4. 4.Verify business usage documentation
  5. 5.Calculate allowable quantum

Renovation & Repairs

  1. 1.Distinguish repairs vs improvements
  2. 2.Check Section 14Q eligibility
  3. 3.Document renovation purposes
  4. 4.Apply appropriate claim periods
  5. 5.Maintain contractor invoices

Professional Fees

  1. 1.Categorize by service type
  2. 2.Identify capital vs revenue nature
  3. 3.Check for success fee arrangements
  4. 4.Verify withholding tax compliance
  5. 5.Document business necessity

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