Robotic Ice-Cream Machine Dealer Convicted of False PIC Claim

27 Apr 2017

Robofusion Asia Pte Ltd (“Robofusion”), a company that supplies robotic ice-cream kiosks, has been convicted of giving false information in the Productivity and Innovation Credit (PIC) cash payout application form. The company director, Yong Tai Kok (“Yong”), has also been convicted of his role in helping the company to make the false PIC claim.   

Giving False Information in PIC Cash Payout Application Form

Businesses must have employed at least three local employees before they are eligible to apply for the PIC cash payout.  

Investigations revealed that Yong obtained the consent of Lim Xian Yu Mark (“Lim”) and Tay Hui Jie (“Tay”), who were not employees of Robofusion, to use their names in Robofusion’s PIC cash payout application form dated 23 May 2013. Robofusion made contributions to their Central Provident Fund accounts, in order to represent them as Robofusion’s local employees when in fact they were not.  

Robofusion’s PIC cash payout application was for the purchase of “Robofusion Generation 4 Ice Cream Kiosk” costing $93,000 on 28 Feb 2013 and “Software License and Implementation for Cashless Payment System and Kiosk Payment Integration” costing $14,980 on 29 Apr 2013. The amount of PIC cash payout which was wrongfully obtained was $60,000.  

Court Sentences

The court ordered Robofusion to pay a penalty of $60,000 for the PIC cash payout that it was not entitled to.  

Yong was convicted of intentionally aiding Robofusion to, without reasonable excuse, give false information to the Comptroller of Income Tax to obtain a PIC cash payout which the company was not entitled to. The court ordered Yong to pay a penalty of $120,000, which is twice the amount of PIC cash payout that was wrongfully claimed and a fine of $4,000.  

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 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.   

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, reveal evaded taxes, or report malpractices that might indicate tax evasion, can write to:

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

Email: ifd@iras.gov.sg

 

Inland Revenue Authority of Singapore