Low Kim Hock ("Low"), a 55-year-old precedent partner of Seng Kim Hock Engineering Works, has been convicted of giving false information to the Comptroller of Income Tax without reasonable excuse to obtain a higher Productivity and Innovation Credit (PIC) cash payout of $17,760 that his partnership was not entitled to under the PIC scheme in Oct 2016.

Low was one of the claimants linked to the case of Ng Cheow Chai, director of a machinery wholesaler behind the PIC scam. Ng was convicted and sentenced on 27 Mar 2020 to 46 months of imprisonment and ordered to pay over $5 million in penalties for his crime.
  
Court Sentences
The Court found Low guilty under Section 37J(2) of the Income Tax Act for submitting false information to the Comptroller of Income Tax without reasonable excuse to obtain a higher PIC cash payout than Seng Kim Hock Engineering Works was entitled to. He was sentenced to a fine of $5,000 and ordered to pay a penalty of $35,520, which is twice the amount of the payout wrongfully obtained.

Low also faced another charge under Section 47(1)(b) of the Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act, Cap 65A, which was taken into consideration for the purpose of sentencing.

Severe Penalties for Abusing the PIC Scheme

IRAS takes a serious view of any attempt by claimants, vendors or consultants to defraud the government. Offenders convicted of abusing the PIC scheme will have to pay a penalty of up to four times the amount of cash payout fraudulently obtained, and a fine of up to $50,000 and/or imprisonment of up to five years.

Reporting of Malpractices

Businesses or individuals are encouraged to immediately disclose any past tax mistakes. IRAS will treat such disclosures as mitigating factors when considering action to be taken. Those who wish to disclose past mistakes or report malpractices can write to:

Inland Revenue Authority of Singapore
Investigation & Forensics Division
55 Newton Road, Revenue House
Singapore 307987

Email: [email protected]

Cash Rewards for Informant

A reward based on 15% of the tax recovered, capped at $100,000, will be given to informants if the information and/or documents provided lead to a recovery of tax that would have otherwise been lost. All payments are at the discretion of the Comptroller. IRAS will ensure that the identities of informants are kept strictly confidential.

Inland Revenue Authority of Singapore