Case and status
Qaizar Consultancy proprietor K H Raja Mohamad Bin Maiden was convicted of a false PIC claim seeking S$59,332.80. The purported software expenditure was S$98,888 for an October–December 2012 qualifying period.
Facts, amounts and outcome
The business was registered only on 10 April 2013, two days after the application, and had no actual trade. Commencement and purchase documents were backdated, as were CPF payments for three people who were not employees. The court imposed S$118,665.60 penalties and a S$4,500 fine. Default imprisonment periods applied if unpaid. Backdated records could not create expenditure or employment that did not exist during the qualifying period.
Historical PIC conditions and abuse
The PIC case concerns genuine qualifying productivity expenditure and the applicable local-employee requirement. False invoices, inflated prices, sham purchases or listing people who did not work for the business do not meet those conditions. The release warns that claimants, suppliers, consultants and promoters may each be liable for their own conduct. Its discussion of PIC payouts and bonuses describes a historical scheme rather than an invitation to apply for a current grant.
Disclosure, reporting and rewards
IRAS encourages taxpayers to correct past errors and report suspected tax malpractices. The release says disclosure may be considered when deciding enforcement action; it is not a blanket promise of immunity. Where the release describes informant rewards, qualifying information leading to otherwise lost tax recovery may attract 15% of recovered tax, capped at S$100,000, at IRAS’ discretion. Informant identities are kept confidential. Use the official release links for its reporting and disclosure channels.
Official source
This report is independently written from the IRAS release dated above. Case status, policy announcements and historical figures refer to that release.
Read the complete IRAS release ↗