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Company director gets 5 weeks' jail for PIC fraud

A company director was sentenced to five weeks' jail for submitting a false Productivity and Innovation Credit (PIC) claim to obtain cash payout of S$60,000 for his company.

SINGAPORE: A company director was sentenced to five weeks' jail for submitting a false Productivity and Innovation Credit (PIC) claim to obtain cash payout of S$60,000 for his company.

Alex Rajan Anthony Samy, 47, the director of Exel Mitsui Technologies Pte Ltd (EMTPL), was also ordered to pay a penalty of S$180,000 for the offence.

The company had earlier been ordered to pay a fine of S$8,000 and a penalty of S$180,000.

The Inland Revenue Authority of Singapore (IRAS) said this is the second case of a director and its company to be charged for making false PIC claims.

Alex Rajan had made a false declaration in a PIC cash payout application form that EMTPL had purchased PIC automation equipment for S$168,000 and that his company met the qualifying conditions for the cash payout.

IRAS' investigations showed that EMTPL did not incur such an expenditure on the equipment.

The company also did not employ or make CPF contributions for at least three local employees in the relevant period.

It was found that EMTPL had never been in active business operation.

Offenders convicted of PIC fraud are liable to pay a penalty of up to four times the amount of cash payout fraudulently obtained, and a fine of up to S$50,000 and/or jail of up to five years.  

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