Sole Proprietor Convicted of PIC Fraud
11 Dec 2015
Junaidah Binte Abu Samah (“Junaidah”), sole proprietor of Jas Delight (“JD”), was charged and convicted for submitting false information in order to obtain a Productivity and Innovation Credit (PIC) cash payout of $9,000 for her business.
Facts of the Case
Junaidah submitted an application for a PIC cash payout in 2013, based on the purchase of automation equipment, with a false declaration that JD had met the condition of having three local employees during the period of her claims. IRAS’ investigations revealed that when the PIC cash payout application was made, Junaidah was a baker who worked on her own with no employees. She had sought for permission from her acquaintances to use their names on the premise of fulfilling the conditions for a “government grant”, even though they were not employees of JD.
Junaidah was charged and convicted for wilfully with intent to obtain a PIC cash payout she was not entitled to, providing false information in the PIC cash payout application form. Junaidah was ordered by the court to pay a penalty of $27,000, three times the amount of the cash payout that had been wrongfully obtained, and a fine of $10,000.
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