
Tax Governance Framework
Objective
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Daiya Engineering & Construction Pte Ltd (DEC), GST-registered since 1 April 1994, primarily provides building construction services for good class bungalow, petroleum service stations and high-end residential projects. Over time, DEC has expanded into aluminium, timber, and steel fabrication.
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In line with maintaining a sustainable business, DEC is committed to full compliance with IRAS tax laws and regulations. A Risk Management Framework (RMF), endorsed by Senior Management and the Managing Director, is in place to govern tax compliance and is updated regularly to reflect material regulatory changes. DEC has also joined the Tax Governance Framework (TGF) initiative since 2023 to demonstrate strong tax governance through:
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Governance structure
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Transparent relationship with tax authorities
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Adherence to tax laws
Governance Structure
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Tax risk includes financial or legal consequences from non-compliance or misinterpretation of tax laws. DEC mitigates these risks through a formal governance structure supported by internal controls or tax advisors and timely filings. The accounts team or tax advisors monitors tax obligations, supported by regular updates from IRAS and ongoing staff training.
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DEC’s RMF, developed post-ACAP status in 2019, categorizes risks into:
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Compliance Risk: Awareness of tax laws and guidelines
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Processing Risk: Operational issues in tax reporting
Mitigation strategies include:
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Regular IRAS updates
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Consultation with tax advisors for complex issues
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Tax training for finance staff
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System updates to ensure correct GST classification
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Thorough review and approval process before tax filings​
All tax documentation is securely stored and accessible to authorized personnel.
Relationship with Tax Authorities
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DEC maintains a transparent and collaborative relationship with IRAS, based on open communication and full disclosure. Uncertain tax positions are internally assessed and clarified with tax advisors or IRAS, ensuring accurate and compliant tax treatment.
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Tax risks are categorized and managed as follows:
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Low risk: Documented internally
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Medium/High risk: Specific controls and strategies are implemented​
Tax risk assessments are integrated into ACAP reviews, GST and corporate tax returns. All findings and decisions are documented and retained for five years. Escalation protocols are in place for risk approvals, with senior oversight by the Managing Director.
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Participation in ACAP and TGF reflects DEC’s proactive approach in aligning with IRAS expectations and upholding robust tax governance.
Compliance with Tax Laws
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DEC ensures full compliance with tax laws by:
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Regularly reviewing IRAS updates
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Escalating material changes to Senior Management
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Engaging tax advisors for complex issues
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Evaluating tax implications in new business decisions
DEC maintains professionalism and avoids aggressive tax planning, only engaging in transactions with genuine commercial substance. Periodic RMF reviews ensure continued alignment with Singapore’s tax laws and submission accuracy.