- Close to 2,200 Employers Reviewed for their Eligibility for JSS Payouts
- Four Cases Referred to the Police for Investigations
The Inland Revenue Authority of Singapore (IRAS) has
taken actions against employers who have attempted to abuse the Jobs Support
Scheme (JSS). It has denied JSS payouts either
partially or fully to 444 employers. IRAS has also referred
egregious cases to the Police for investigations.
Close to $10 million of JSS Payouts Denied to Employers
Close to 2,200 employers have been selected
for review for the July 2020 JSS payouts.
Employers under review would have their JSS payouts withheld until they are
able to submit supporting documents to IRAS to verify the authenticity and
accuracy of mandatory CPF contributions made. Their payouts
would be adjusted
or denied if issues
are found during the review, and egregious cases would be referred to the
Police. This is part of IRAS’ anti-gaming efforts to ensure that JSS payouts
are fairly and correctly disbursed.
As of end September, IRAS has received documents from
and concluded the review of over 1,400 employers. Close to $10 million of JSS payouts
to 444 employers have been denied either partially or fully.
Some of the unacceptable practices observed are in Annex A (PDF, 102KB).
Four Cases Under Investigation
by the Police
In the course of its review, IRAS would also refer
egregious cases of suspected abuse to the Police. These include employers
submitting false documents to IRAS to substantiate their eligibility for the JSS. IRAS has referred four such cases
to the Police, and the Police is looking into the matter.
About the JSS
The JSS provides support to employers to offset part of the wages of local employees
during this period of economic uncertainty. On 17 August
2020, the Government announced that the JSS has been extended by up to 7
months, covering 10% to 50% of the first $4,600 of gross monthly wages paid to
each local employee up to March 2021. Employers need not apply for the scheme, as the cash grant will be automatically computed based on mandatory
CPF contribution data.
Measures to Curb JSS Abuse
IRAS has a robust anti-gaming framework to identify
risks and prevent
abuse. IRAS also has
a dedicated team to review
the authenticity and accuracy of CPF amounts
for bona fide employees
based on actual
wages paid. IRAS uses data analytics and risk profiling to identify cases for review.
IRAS will continue to review employers’ eligibility for the October 2020 JSS payouts.
Voluntary Disclosure of Errors
To-date, close to 50 employers have voluntarily declared the incorrect mandatory CPF contributions that they have made for their employees. Their JSS payouts have been adjusted before disbursement. Ahead of the October 2020 JSS payouts, employers are encouraged to review the mandatory CPF contributions for employees to ensure that they have contributed the appropriate amount, based on actual wages paid to bona fide employees.
Reporting of Malpractices
IRAS has also received over 300 reports from whistle blowers
on employers suspected to have abused the JSS. Each report will be assessed
thoroughly. Businesses or individuals who wish to report any malpractices or
potential abuses of the JSS may do so via email to [email protected] or online at go.gov.sg/jssreport.
Severe Penalties for JSS Abuse
There are severe penalties for any attempt to abuse the JSS. Other than having their JSS payouts denied, the employers may be liable for the offence of cheating under Section 420 of the Penal Code, which carries an imprisonment term of up to 10 years and also a fine.
Inland Revenue Authority of Singapore