It was reported in the IRAS’ website on 14 Feb 2014 that Mr Alex Rajan s/o Anthony Samy (“Alex Rajan”), a director of Exel Mitsui Technologies Pte Ltd (“EMTPL”) was charged for submitting a false Productivity and Innovation Credit (“PIC“) claim in order to obtain cash payout of $60,000 for his company.
The taxpayer pleaded guilty to the charge and will be sentenced on 21 February for the offence. Meanwhile, the Court has ordered EMTPL to pay a fine of $8,000 and a penalty of $180,000.
This is the second case of a director and its company to be charged for making false PIC claims. IRAS had earlier charged Greenit Pte Ltd, a computer equipment and hardware wholesaler and computer memory modules distributor, and its director Khoo Tzyh Shin for fraudulently claiming a PIC cash payout (refer to our earlier post here!)
Director made false PIC claims
Alex Rajan made a false declaration in a PIC cash payout application form that EMTPL had purchased PIC automation equipment for $168,000 and that his company met the qualifying conditions for the cash payout. IRAS’ investigations revealed that EMTPL did not incur such expenditure on the equipment. The company also did not employ or make CPF contributions for at least three local employees in the relevant period. In fact, EMTPL had never been in active business operation.
What does this mean to you?
You are advised to make the PIC Scheme properly. IRAS takes a serious view of taxpayers who defraud the Government. Offenders will have to pay a penalty up to 4 times the amount of cash payout fraudulently obtained, and a fine of up to $50,000 and/or imprisonment of up to 5 years.
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