Managing Partner Convicted of PIC Fraud
26 Aug 2015
A managing partner was charged for submitting false information in order to obtain a Productivity and Innovation Credit (PIC) cash payout of $6,000 for his business.
Mr Neo Leong Kiat (“Neo”, 38) is the managing partner of Mailcarp LLP (“MC”), a limited liability partnership which deals in email marketing solutions and software consultancy.
Facts of the Case
Neo submitted an application for a PIC cash payout based on the purchase of an automation equipment, in which he falsely declared that MC met the qualifying conditions for the cash payout.
IRAS’ investigations revealed that Neo made the claim despite knowing that MC did not fulfil the condition of employing three local employees. To make his claim appear legitimate, he made CPF contributions to two individuals one day before the date of the cash payout application, in order to represent them as MC’s local employees when in fact they were not.
Neo was charged and convicted for wilful intent to assist MC to obtain a PIC cash payout which it was not entitled to by providing false information in the PIC cash payout application form.
Neo was ordered by the court to pay the maximum fine of $10,000 for this charge, and a penalty of $18,000, three times the amount of the cash payout that would have been wrongfully obtained.
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 PIC abuse 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 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