Two Company Managers Sentenced to 6 weeks’ Jail and More Than $300,000 Penalty Each for PIC Fraud

Fictitious equipment claims

Luxuriant Furnishing Design managers Yew Chay Hwa and Tiong Keng Kong authorised YA 2016/2017 PIC claims for machines that had not been purchased. The forms declared S$187,600 of qualifying expenditure and sought S$111,360 in payouts. Circular fund transfers and false invoices portrayed genuine purchases.

Outcome for each manager

Both pleaded guilty to two proceeded abetment charges and were sentenced on 23 September 2021. Each received six weeks’ imprisonment and a S$334,080 financial penalty, three times the wrongfully obtained or sought payout. Remaining charges were considered at sentencing.

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.

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