12 Aug 2014

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  [1] , and was ordered to pay a fine of $5,000 and a penalty of $48,704 [2] .

Media Grafix is the third company to be convicted of PIC abuse.

PIC claim inflated to obtain higher cash payout

Media Grafix 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.

Investigations revealed that Media Grafix had in fact only paid $21,150 for these purchases, but had used fictitious tax invoice to support a false PIC claim for an inflated amount. 

IRAS takes a serious view of any abuse of PIC Scheme 

IRAS audits PIC claims and takes a serious view of any attempt by claimants, vendors or consultants to artificially inflate the value of their PIC expenditure. 

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. 

To guide businesses in getting their PIC claims right, IRAS has published a list of common mistakes to avoid, on www.iras.gov.sg/irasHome/commonpicmistakes.aspx. 

Businesses and individuals are urged to disclose any past mistakes in their PIC claims. IRAS will treat such disclosure as well as the cooperativeness of the business or individual during investigations as mitigating factors when considering the penalties to be imposed. 

Anyone who wishes to disclose past mistakes or report potential abuse of the PIC scheme can write to:

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

More information on PIC 

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

  1. Website: www.iras.gov.sg/irashome/picredit.aspx 
  2. Email:  
  3. Helplines 
    • Companies: 1800 356 8622 
    • Self-employed/partnership: 6351 3534 
  4. PIC seminars:  Seminars and Events home

Inland Revenue Authority of Singapore 

[1]   Under the PIC scheme, businesses can convert the qualifying expenditure into a 60% cash payout. 
[2]   ($27,058 X 60%) X 3 = $48,704.