Common Errors Observed During Audits
Below are some common errors observed during these audits. We hope that a better understanding of these common mistakes will help clubs/societies to prepare and submit accurate and complete tax returns. Under the law, IRAS may impose penalties for the submission of an incorrect gambling duties return and for failure to keep proper records.
1. Audit Checklist For Form PL-R1 Not Maintained By The Clubs/Societies
With effect from the reporting month Jan 2012, all club/society-appointed auditors are required to perform a review of the Form PL-R1 based on the checks imposed by IRAS. These checks are meant to:
1. Guide the auditors in reviewing the PL Forms prepared by the clubs/societies
2. Ensure that the auditors perform all the required checks
2. Soft Meter Readings Inaccurately Reported Or Not Supported As A Result Of Meter Resets
As a result of meter resets, some clubs/societies were found to have reported:
1. Inaccurate soft meter readings; or
2. Soft meter readings which were not supported with relevant printouts.
Where possible, soft meter readings before and after a meter reset should be printed and kept to support the meter readings reported in Form PL-R1.
Care also has to be taken when recording and computing the correct Turnover and Total Wins meter readings for meter reset cases.
Please refer to the Form PL-R1 (Reconciliation of soft and hard meter readings)version9 (XLSX, 66 KB) for an illustration of how meter readings should be reported in meter reset cases.
3. Failure To Comply With IRAS' Requirements Relating To The Hard Meters Of Gaming Machines
1. Did not secure the gaming machine hard meter casing with a seal;
2. Did not maintain or keep the hard meter seal register up-to-date; and/or
3. Failed to label the hard meters of their gaming machines.
1. Mount the hard meters of every gaming machine with a cover.
2. Secure it with a serially numbered single-use seal to prevent tampering of the hard meter readings.
For good control and accountability, the replacement/breaking of the seal should be recorded in a Hard Meter Seal Register. The person who breaks the seal and another person who has witnessed the replacement/breaking of the seal should also acknowledge with their names, designations and signatures on each record.
For more details, please see the Hard Meter Casing Seal Register(XLSX, 12 KB).
3. Ensure that the hard meter readings on every gaming machine are clearly labelled with “Turnover”, “Total Wins”, “Money In” and “Money Out”.
If the hard meters are not labelled accurately, clubs may be unable to extract the appropriate meter readings for correct reporting in Form PL-R1.
4. Retention of Soft Meter Printouts In Thermal Paper
5. Using Soft Meter Printouts To Prepare "Cash Collected" And "Handpays / Cancelled Credits" Under Form PL-R2
1. Profit based on soft meters (i.e. meter readings); and
2. Profit based on manual records (i.e. actual cash flow).
|Types of System
Cash Collected ($)
Handpays/Cancelled Credits ($)
|Cash count records
|Cash count records + Ticket in report
|Handpays records + Tickets Out report
|Cash count records + e-Credits in report
|Handpays records + e-Credits Out report
For good control, we recommend the club to set an acceptable threshold (say $5) and investigate any variance that is above the set threshold.
6. Hard Meter Readings Record, Cash And Hopper Count Records Were Not Signed By Preparer And Reviewer
7. Jackpot Prizes Awarded Were Not Reported In Forms PL-R, PL-R1 And PL-R2
8. No Adjustment Made For Unredeemed Expired TITO Tickets, Unclaimed Credits And Unclaimed Winnings
1. Unredeemed expired Ticket-In-Ticket-Out (TITOs) tickets
2. Unclaimed credits
3. Unclaimed winnings