36 People Charged for Submitting $11.8 Million Worth of False Claims to IRAS

Remember the COVID-19 relief fund?

It provided a one-time cash payment of S$500 to lower- and middle-income residents in Singapore whose incomes had been affected by the COVID-19 pandemic.

Most applicants had a legitimate basis to obtain financial assistance, but some people had abused the system just to get some free cash from the gahmen.  

Surprise, surprise.

A similar thing happened with the Productivity and Innovation Credit (PIC) scheme, which allowed businesses to get significant tax deductions or payouts for investments in research and development, innovation, automation, and training.

But of course, some people ended up abusing the scheme. 36 people, to be exact.

36 People Charged for Submitting $11.8 Million Worth of False Claims to IRAS

The 36 people are believed to have submitted S$11.8 million worth of false claims to the Inland Revenue Authority of Singapore (IRAS).

The alleged offenders were charged in court last Thursday and Friday (27 Aug).

The false claims were submitted under the PIC scheme to the IRAS through multiple companies between 2014 and 2016.

According to the police, the alleged offences of these individuals were:

• failing to exercise any supervision over the affairs of the companies in which they were directors
• helping those who would have no involvement in supervising the affairs of the companies to register as company directors

Some of the alleged offenders reportedly committed both offences. But that wasn’t all.

When you’re caught breaking the law by the authorities, the best course of action is to come clean, right?

But instead of doing so, six of the 36 people charged either lied to the police or asked others to lie to the police during the investigations.

They now face charges for intentionally perverting the course of justice, which carries a penalty of up to seven years’ imprisonment, a fine, or both.

Three of the alleged offenders also had previous charges relating to the PIC scheme, including cheating and money laundering.

Those convicted of failing to discharge their duties as directors can be jailed for up to a year or fined up to S$5,000.

They could also be disqualified from being a director.

PIC Ended in 2018

When it was still in use, the PIC permitted tax deductions or allowances of as much as 400% on qualifying expenses of up to S$400,000.

The PIC ended in 2018, however.

When he announced the move, the then-Finance Minister Heng Swee Keat said that businesses would subsequently be able to claim tax deductions of 200%, capped at S$100,000 every year.

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