Tag Archives: Productivity and Innovation Credit

Income Tax – Wholesale Trader and Company to Pay Penalties of $169,194.60 and Fine of $5,000 for False PIC Claim


It was reported in IRAS’ website on 21 July 2017 that Chin Jin Han (“Chin“), who was running a wholesale trading company, Mah Sing Pte. Ltd (“Mah Sing”), has been convicted of providing false information in the company’s Productivity and Innovation Credit (“PIC”) cash payout application form.

Chin submitted a PIC cash payout application form to IRAS, under Mah Sing’s name, in Apr 2013. He obtained the signature of Mah Sing’s sole director, his mother-in-law who left the running of the business to him, and completed all the required fields in the PIC cash payout application form.

IRAS’ Investigations revealed that Mah Sing did not purchase the two servers and three workstations (“the equipment”) at the purported cost of $93,997, as declared in the PIC cash payout application form. The invoices that showed the purchase of the equipment were false.

Both Mah Sing and Chin were convicted of giving false information to the Comptroller of Income Tax, in order to obtain a PIC cash payout and Bonus which the company was not entitled to.

The court ordered the company to pay a penalty of $56,398.20 which is a one-time penalty of the amount of the PIC cash payout that was wrongfully claimed.

Chin was convicted of giving false information to the Comptroller of Income Tax to assist Mah Sing to obtain a PIC cash payout, which Mah Sing was not entitled to when no such purchase had in fact taken place. The court ordered Chin Jin Han to pay a penalty of $112,796.40, which is two times the amount of PIC cash payout that was wrongfully claimed, and a fine of $5,000.

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.

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

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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.

Company Penalised for False PIC Claims


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.

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

Be Well!
Jack:)

Company Director Jailed for Claiming PIC Fradulently


It was reported in IRAS’ website on 19 September 2013 that a company director was sentenced to jail for 8 weeks for claiming the Productivity and Innovation Credit (“PIC“) cash payout of approximately S$58,000 fraudulently for his company.  This is the first prosecution case since the PIC scheme was introduced in Singapore in 2010.
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