Category Archives: Productivity and Innovation Credit

Income Tax – Robotic Ice-Cream Machine Dealer Convicted of False PIC Claim


It was reported in IRAS’ website on 27 April 2017 that
Robofusion Asia Pte Ltd (“Robofusion”) has been convicted of giving false information in the Productivity and Innovation Credit (“PIC“) cash payout application form.  Its director, Yong Tai Kok (“Yong“) has also been convicted of his role in assisting Robofusion in making the false PIC Claim.

IRAS’ investigation

IRAS’ Investigations revealed that Yong obtained the consent of two other people who were not employees of Robofusion, to use their names in Robofusion’s PIC cash payout application form dated 23 May 2013.  Robofusion made CPF contributions to their Central Provident Fund accounts in order to represent them as Robofusion’s local employees when in fact they were not.

Robofusion’s PIC cash payout application was for the purchase of “Robofusion Generation 4 Ice Cream Kiosk” costing $93,000 on 28 Feb 2013 and “Software License and Implementation for Cashless Payment System and Kiosk Payment Integration” costing $14,980 on 29 Apr 2013. The amount of PIC cash payout which was wrongfully obtained was $60,000.

Eventually … 

The court ordered Robofusion to pay a penalty of $60,000 for the PIC cash payout that it was not entitled to.

Yong was convicted of intentionally aiding Robofusion to, without reasonable excuse, give false information to the Comptroller of Income Tax to obtain a PIC cash payout which the company was not entitled to.  The court ordered Yong to pay a penalty of $120,000, which is twice the amount of PIC cash payout that was wrongfully claimed and a fine of $4,000.

If you have any questions, please contact support@whm-consulting.com

Income Tax – 14 Individuals Were Charged in Court for False PIC Claims


It was reported in the IRAS’ website that 14 individuals who allegedly made false Productivity and Innovation Credit (“PIC”) claims were charged will be charged in court on Friday, 17 Feb 2017. These individuals had registered sole-proprietorships, partnerships or companies and used them to make false claims. Their PIC claims amounting to $334,464 were made between 2013 and 2014.

Investigations by IRAS have revealed that the PIC claims were linked to S. Chandran, who was charged in court on 27 Jan 2017 for assisting 49 claimants to fraudulently obtain PIC cash payouts and PIC bonuses.  IRAS has taken appropriate legal action against these claimants based on the facts and circumstances of each case, including prosecution or other enforcement actions such as the issuance of warning letters.

What does this mean to you?

IRAS takes a serious view of any attempt by claimants, vendors or promoters who abuse the PIC scheme and defraud the Government. In particular, IRAS will take stern action against promoters who facilitate offenses committed against the PIC schemes. Anyone who commits PIC offenses might be subject to penalties of up to four times the amount of PIC cash payout and PIC bonus fraudulently obtained (or which would have been obtained if the offense had not been detected), and a fine of up to $50,000 or imprisonment of up to five years.

If you have any questions, please contact support @whm-consulting.com.

Income Tax – PIC Promoter to be charged for role in PIC claims of over $1 million


It was reported in IRAS’ website on 26 Jan 2017 that a sole proprietor of a consultancy firm was alleged acted as the “promoter” of the PIC Scheme and would face 58 charges of assisting 49 claimants to obtain PIC cash pay-outs and bonuses involving a total amount of approximately $1.1M fraudulently.

Over the past year, IRAS had conducted extensive investigations into a number of suspicious PIC claims. Its investigations revealed that many of such claims were linked to this PIC promoter.  About 200 persons were called up to assist in these investigations. IRAS will take enforcement actions against the claimants, where appropriate, once the investigations are completed.

IRAS said that from the investigations it was found out that many promoters have sought out individuals not carrying on business to register companies and businesses purely to make false claims.  In a typical fraudulent PIC scam, the PIC promoter may assist claimants by providing false documentation to help support the expenditures declared in their PIC cash payout applications.  Such documentation may include false employment contracts, working timesheets, payment vouchers, product flyers or brochures, quotations, and invoices.

In addition, where the claimants do not fulfill the PIC application condition of three local employees, the PIC promoter would provide the names and particulars of up to three unrelated persons just for the purpose of falsely representing to IRAS that the claimants have met the prerequisite of three local employees. These false employees could include friends, relatives, retirees and unemployed persons. Some of these false employees might not have known that their names had been used for PIC claims.

In return for facilitating the false PIC claims, the PIC promoter will take a cut from the PIC cash payouts given to the claimants.

What does it mean to you?

IRAS takes a serious view of any attempt by claimants, vendors or consultants to defraud the Government. In particular, IRAS will take stern action against promoters who facilitate illegal activities.

Anyone who commits PIC offences with wilful intent might be subject to penalties of up to 4X the amount of PIC cash payout and bonus fraudulently obtained (or which would have been obtained if the offence had not been detected), and a fine of up to $50,000 or imprisonment of up to five years.

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

Income Tax – Revised e-Tax Guide on Productivity & Innovation Credit


The IRAS has issued the fifth edition of the e-Tax Guide on Productivity and Innovation Credit on 22 November 2016 with a view to incorporating the Budget 2016 changes:

  •  Expiry of the PIC Scheme in YA 2018,
  • Reduction in the PIC cash payout rate from 60% to 40% for qualifying expenditure incurred on or after 1 Aug 2016,
  • Compulsory e-Filing of PIC cash payout applications with effect from 1 Aug 2016.

Other amendments include the following:

  •  Remove information on PIC bonus which expired after YA2015.
  • The evaluation criteria for the case-by-case approval of automation equipment (see Annex A)  Remove paragraph on the clarification of the basic tool criteria c. Enhanced Writing-Down Allowance (“WDA”) and Deduction for Intellectual Property Rights (“IPRs”)
  • Enhancement to allow companies to make an irrevocable election to claim the WDA over a five, ten or fifteen-year period (on a straight line basis) on capital expenditure incurred in acquiring the IPR – with effect from YA 2017.

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

Income Tax – Man Charged for Cheating in respect of PIC Fraud


It was reported on IRAS’ website on 18 November 2016 that Lim Chit Foo was charged with five counts of Abetment by Conspiracy to Commit Cheating under the Penal Code, in respect of claims made under the Productivity and Innovation Credit (PIC) Scheme. If convicted, the offender would be punished with imprisonment for a term which may extend to 10 years, and is also liable to fine.

In this case, 28 companies have been investigated by IRAS in a suspected PIC group fraud. As part of the investigations, IRAS conducted an island-wide raid operation at multiple locations including Genting Lane, MacPherson and Balestier Road in October 2016. Computers, mobile phones and business records were seized during the operation.

As IRAS’ initial investigation revealed possible offences under the Penal Code, the case has been referred to the Commercial Affairs Department (CAD) of the Singapore Police Force for further investigations.

What does this mean to you>

IRAS takes a serious view of any attempt by claimants, vendors or consultants to defraud the Government. Under the Income Tax Act, anyone convicted of an offence of abusing the PIC Scheme will have to pay a penalty of up to four times the amount of PIC cash payout fraudulently obtained or which would have been obtained if the offence had not been detected, and a fine of up to $50,000 and/or imprisonment of up to five years.

Cases involving possible offences under other laws may be referred to the relevant enforcement agencies for investigation.

If you have any questions, please contact support@whm-consulting.com.