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Singapore

S$32 million in jobs scheme payouts denied to 1,300 employers for March: IRAS

S$32 million in jobs scheme payouts denied to 1,300 employers for March: IRAS

Man walking by the Inland Revenue Authority of Singapore building. (Photo: Gaya Chandramohan)

SINGAPORE: The Inland Revenue Authority of Singapore (IRAS) on Monday (May 31) said that it has denied S$32 million in Jobs Support Scheme (JSS) and Jobs Growth Incentive (JGI) payouts to 1,300 employers for March.

Ten cases of suspected JSS abuses have also been referred to the police for investigation, IRAS said in a media release.

About S$16 million in payouts was denied for each scheme, with 500 employers affected under the JSS and 800 affected under the JGI.

Overall, IRAS has withheld S$85 million from 2,600 employers for further checks for March payouts under the JSS and JGI. Reviews have been concluded for more than 800 JSS payouts and close to 1,100 JGI payouts for the tranche.

Affected employers will have to submit supporting documents to IRAS to substantiate their eligibility for the schemes.

This is “part of IRAS’ anti-gaming efforts to ensure that JSS and JGI payouts are fairly and correctly disbursed”, the authority said.

“These 2,600 employers make up about 2 per cent of all qualifying employers for the JSS and JGI payouts,” IRAS said.

“Employers will receive their JSS and JGI payouts once IRAS has verified the authenticity and accuracy of the information submitted.

“Their payouts would be adjusted or denied if issues are found during the review.”

S$52 million of the withheld payouts fall under the JSS while the remaining S$33 million are under the JGI.

READ: F&B businesses to get more support from Jobs Support Scheme following tighter COVID-19 measures

READ: Jobs Support Scheme extended to retailers, gyms and arts sector

The JSS was introduced as part of the Unity Budget in February 2020 to provide wage support for employers to retain their local employees amid the COVID-19 crisis. All active employers, except for local and foreign government organisations and representative offices are eligible for the JSS.

The JGI aids employers in expanding local hiring "so as to create good and long-term jobs for locals", IRAS said on its website. It is available from September 2020 to September 2021.

About S$44 million in JSS payouts has been denied since the scheme was implemented.

READ: Employers to receive more than S$3 billion in Jobs Support Scheme payouts from Mar 30

READ: 130,000 locals hired by 27,000 firms under Jobs Growth Incentive in 3 months, says MOM

SUSPECTED ABUSES

In the process of reviewing the JSS and JGI payouts, IRAS detected a variety of suspected abuses.

“Examples include employers making Central Provident Fund (CPF) contributions for non-genuine employees, inflating CPF contributions for employees without actual wage increases and maintaining CPF contributions for employees on wage cuts,” it said.

“IRAS has adjusted the payments for employers who readily corrected their erroneous employees’ CPF contributions. Some employers had chosen not to respond to IRAS’ requests for clarifications, thus forgoing their payouts.

“A small group of employers had provided what appeared to be fabricated documents in an attempt to substantiate their eligibility for the scheme.”

IRAS has referred 10 cases to the police for investigation.

“Egregious cases of suspected abuse would be referred to the police for further investigations,” the authority said.

Police are currently looking into the 10 referred cases which all come under the JSS.

READ: Nearly S$10 million in Jobs Support Scheme payouts denied to firms with 'unacceptable practices'

“IRAS has a robust anti-gaming framework that harnesses data analytics and risk profiling to identify risks and prevent abuse,” the authority said.

“A dedicated team has also been established to review the accuracy of CPF amounts for genuine employees based on actual wages paid.

“IRAS will continue to review employers' eligibility for subsequent JSS and JGI payouts.”

IRAS added that it has received about 500 reports from whistleblowers on suspected JSS and JGI abuses by employers.

Employers who abuse these schemes may be liable for the offence of cheating, and may face up to 10 years in prison and a fine.

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Source: CNA/kg(rw)

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