Media Grafix Pte Ltd, a digital printing company in Singapore, has been convicted of abusing the Productivity and Innovation Credit (PIC) scheme to illegally obtain a higher PIC cash payout, and has been ordered to pay a fine of S$5,000 (US$3,992) and a penalty of S$48,704 (US$38,890.57).
Media Grafix is the third company to be convicted of PIC abuse.
Media Grafix falsely claimed a total of S$27,058 (S$21,606.37)as having been spent to purchase automation equipment including computers, a suite of Adobe software and IT networking and data storage equipment in its PIC cash payout application form.
Investigations revealed that Media Grafix had in fact only paid S$21,150 for these purchases, but had used fictitious tax invoice to support a false PIC claim for an inflated amount.
Inland Revenue Authority of Singapore audits PIC claims and takes a serious view of any attempt by claimants, vendors or consultants to artificially inflate the value of their PIC expenditure.
Offenders convicted of abusing the PIC scheme will have 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 (US$39,925.52) and/or imprisonment of up to five years.