Company director jailed for making false claims

[Windsorlou]

Updated: 09/19/2013 20:19 | By Channel NewsAsia

Company director jailed for making false claims

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SINGAPORE: A company director has been sentenced to eight weeks' jail for making false claims to get a cash payout from the government of more than S$58,000.

Khoo Tzyh Shin, a director of Greenit, a computer hardware wholesaler, has pleaded guilty to making a fraudulent Productivity and Innovation Credit (PIC) claim.

Khoo also has to pay a penalty of more than S$230,000.

In a statement, the Inland Revenue Authority of Singapore (IRAS) said Khoo had falsified invoices and declared a sum of S$193,812 as qualifying expenditure in order to claim the PIC cash payout when there was no such expenditure incurred by the company.

IRAS said the claim was committed with "the wilful intent to obtain a PIC cash payout that the company was not entitled to".

The PIC scheme was introduced in 2010 to support businesses that invest in innovation and productivity improvements.

Businesses can enjoy a 400 per cent tax deduction or 30 per cent cash payout for investments under six qualifying activities.

IRAS said this is the first such case since the scheme was introduced.

It said it takes a serious view of taxpayers who defraud the government.

Those found guilty of PIC fraud have to pay a penalty of up to four times the amount of cash payout fraudulently obtained.

They also face a maximum fine of S$50,000 and five years' jail.

- CNA/fa