It was reported in the IRAS’ website on 12 Aug 2014 that Media Grafix Pte Ltd (“Media Grafix”), a digital printing company, was convicted of abusing the Productivity and Innovation Credit (“PIC”) scheme to illegally obtain a higher PIC cash payout, and was ordered to pay a fine of $5,000 and a penalty of $48,704. This is the third company to be convicted of PIC abuse.
IRAS’ investigation revealed that the company falsely claimed a total of $27,058 as having been spent to purchase automation equipment including computers, a suite of Adobe software and IT networking and data storage equipment in its PIC cash payout application form.
However, the company only spent $21,150 for these purchases and used fictitious tax invoice to support a false PIC claim for an inflated amount.
What does this mean to you?
Any abuse of the PIC scheme is a serious offence and taxpayers who are convicted would have to pay a penalty of up to 4 times the amount of cash payout fraudulently obtained, plus a fine of up to $50,000 and/or imprisonment of up to five years.
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