Tax advisors play the role of consultants, supervising tax problems for clients and advising them on tax laws. Advice is dispensed in three broad areas: tax implications of business dealings, cost-effective decisions to taxation demands and the implications of changes in tax laws and the tax system.
Aside from major corporate tax issues, like compliance – tax returns – and transactions like M&A, there are other specialist areas in tax advisory, including employee issues such as stock options and CPF contributions, indirect tax services like advising on VAT, GST and import duties, as well as personal or business taxation services for high-net- worth clients.
General overview
Many new hires start off as trainees in a tax department of a professional services firm as they study part-time for the professional qualifications needed to become a chartered tax accountant. From there, graduates may choose to move to a company that focuses exclusively on taxation issues, or specialise further in certain fields of taxation.
A full-fledged tax advisor prepares taxes for clients in such a way that it decreases the amount of tax that needs to be paid while still complying with government tax regulations. This includes research into previous tax filings, attending strategy meetings with clients and preparing presentations on their tax liabilities to keep them updated.
Required skills
A finance degree is helpful but not essential, though the Chartered Accountant certification is a must. Moreover, all practicing tax accountants in Singapore are required to undertake 30 hours of Continuing Professional Education (CPE) each year in order to maintain the quality of their work.
The course is offered by ISCA, the Tax Academy of Singapore, as well as selected tax and accounting organisations. SIAPT is an information institute about the tax profession.
Graduates will also need to arm themselves with knowledge about the latest laws and regulations in regards to taxation matters to ensure advice is timely and accurate. More than that, familiarity with the international business scene and tax laws in other countries is essential for dealing with international investments on behalf of clients.
Moreover, coping with pressure and practising discretion when handling clients’ tax affairs is also important in this line of work.
Pros & cons
Life as a tax accountant is exciting as the role may constitute working in a proposal meeting one day, and on large tenders the next. Tax advisory is also intellectually challenging as its purview includes helping clients resolve difficult taxation issues.
Because tax professionals work in teams with varied backgrounds and specialisations, there is exposure to different aspects of advisory work as well.
Stress levels, however, are considerable from juggling multiple projects while pursuing specialised qualifications – all on tight deadlines. And every once in a while, professionals can still encounter difficult clients who can be frustratingly secretive of their business accounts.
