SG-Audit-Checklist - Swanson Reed | Specialist R&D Tax Advisors

Section 1: Project Eligibility

1. What was the main purpose of your project?

To resolve a specific scientific or technological uncertainty (an IRAS must-have). To create a new product or process using standard methods already known in our industry. To do market research, routine software updates, or cosmetic business improvements.

2. Could a competent professional in your field have easily figured out how to achieve your project's technical goals?

No way. The solution wasn't out there, and couldn't just be Googled or deduced from public knowledge. Probably, with a bit of standard research and tweaking of known principles. Yes, very simple. It was a straightforward engineering or coding task.

3. Did your team follow a systematic process of experimentation and analysis?

Yes, very structured. We formed hypotheses, tested them, and formally analyzed the results to guide development. Got do some informal trial-and-error, but we didn't really document the process down. No need. We just built the final version straightaway based on our project plan.

Section 2: Expenditure Qualification

4. How did you determine the staff costs (including CPF) included in your claim?

We used timesheets or a solid internal system to track the exact hours employees spent directly on the R&D project. We just agar-agar (estimate) each person's time based on their job title and responsibilities. We claimed a flat percentage of the entire tech team's salary costs, simple.

5. For staff who were not 100% focused on R&D, how did you apportion their time?

Our records clearly split their R&D activities from their daily operational business-as-usual duties. We estimated a percentage split, but don't really have detailed daily records to back it up. We claimed their whole salary anyway, even though they perform other company duties.

6. What other costs (consumables) are you claiming?

Only materials and utilities directly consumed or destroyed during the actual R&D testing process. We included some general office overheads, rent, and admin costs. We claimed the cost of materials that eventually went into the final product sold to customers.

Section 3: Record Keeping

7. What kind of documentation do you have ready to show IRAS?

Very solid. We have tech documents, test logs, meeting minutes, and a clear write-up showing the initial uncertainty and the work done. We have some scattered emails, PowerPoint decks, and a basic project timeline. Barely anything. We would mostly rely on the memory of the engineers involved.

8. Can you easily link the costs in your claim to the specific R&D activities?

Yes, our accounts are set up to track R&D expenses per project. We can pull the exact invoices and payroll trails easily. It will be quite a headache to dig out and compile the financial proof from different places. Cannot. Our R&D costs are all mixed up with our general daily business expenses.

9. Who was the "Competent Professional" leading the technical aspects of the project?

We have a designated individual with the right qualifications and industry experience who can confidently explain the tech challenges to IRAS. The project was managed by someone without a deep technical background in this specific field. We don't actually have a designated technical lead for the project.

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Low Risk (0-10 points): Swee! Looking Strong

Your score is . Very steady! Your answers suggest you have a robust process for claiming R&D tax measures. Your documentation, cost tracking, and understanding of IRAS project eligibility appear to be well-aligned with an auditor's expectations.

Next Step: Keep up the good work. Just ensure your technical narrative clearly tells the story of your R&D project, from the initial uncertainty to the final conclusion.

⚠️

Medium Risk (11-25 points): Need to Kiasu a Bit

Your score is . Your claim might be valid, but got some holes an auditor could challenge, particularly around your documentation or agar-agar cost apportionments. You might be asked to show more solid proof.

Next Steps: Focus on strengthening your paperwork. Write a technical report retrospectively if you need to. Review your cost calculations and ensure you have a logical basis for any estimates made. Good idea to have a specialist review your claim.

🛑

High Risk (26+ points): Alamak! Urgent Action Required

Your score is . GG. Your answers indicate a very high risk of your claim kena rejected. There appear to be significant gaps in eligibility, cost calculation, or evidence. Submitting a claim in this state is asking for an IRAS inquiry and potential penalties.

Next Steps: Do not anyhow submit your claim without a fundamental review. Critically re-evaluate whether your project meets the strict definition of R&D. You should urgently seek advice from a reputable R&D tax credit specialist in Singapore.

We're not around right now. But you can send us an email and we'll get back to you, asap.

IRAS R&D Tax Claim Health Check

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