A company director was sentenced to 5 weeks’ jail for submitting a false Productivity and Innovation Credit (PIC) claim in order to obtain cash payout of $60,000 for his company.

Mr Alex Rajan s/o Anthony Samy (“Alex Rajan”, 47), director of Exel Mitsui Technologies Pte Ltd (“EMTPL”) which manufactures machine tool accessories, was also ordered to pay a penalty of $180,000 for the offence; in default, 18 weeks’ jail. In an earlier sentencing, 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.

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.

IRAS takes a serious view of any abuse of PIC Scheme

IRAS takes a serious view of taxpayers who defraud the government. Offenders convicted of PIC fraud 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.

To guide businesses, IRAS has published on its website a list of common mistakes to avoid when claiming PIC:

https://www.iras.gov.sg/irashome/Schemes/Businesses/Productivity-and-Innovation-Credit-Scheme/Common-Mistakes-to-Avoid-and-Things-to-Take-Note-of/

Businesses that wish to report malpractices or potential abuses of the scheme can write to:

Inland Revenue Authority of Singapore
Investigation & Forensics Division
55 Newton Road, Revenue House
Singapore 307987
Email: [email protected]

Find out more about PIC

Businesses that require additional information or assistance in claiming PIC can refer to the following:

1. Website: http://www.iras.gov.sg/irashome/picredit.aspx
2. Email: [email protected]
3. Helplines
• Companies: 1800 356 8622
• Self-employed/partnership: 6351 3534
4. PIC seminars 
5. One-to-one PIC clinics

Businesses are encouraged to make full use of these complimentary PIC clinics. There are sessions available from Jan to Jun 2014.

Inland Revenue Authority of Singapore