Income Tax – Digital printing company to pay $53,704 in fine and penalty for false PIC claim


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.

If you have any questions regarding the above, please contact us at support@whm-consulting.com

Advertisements

Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s