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