36 people charged over firms' alleged S$11.8m false claims under Productivity and Innovation Credit scheme

THIRTY-SIX people were charged in court on Aug 26 and 27 for their involvement in companies that allegedly submitted false claims under the Productivity and Innovation Credit (PIC) scheme, the Singapore Police Force said in a statement on Monday.

The false claims amounted to S$11.8 million and were made to the Inland Revenue Authority of Singapore between 2014 and 2016.

Under the PIC scheme, which had expired in 2018, businesses could apply for tax deductions or allowances for expenditure incurred in qualifying activities from 2011 to 2018. These activities included the acquisition and leasing of PIC-approved IT and automation equipment, employee training, acquisition and licensing of intellectual property rights, the registration of patents, trademarks, designs and plant varieties, research and development activities and investment in design projects.

The 36 people will be charged for offences under section 157(1) of the Companies Act. They are alleged to have failed to exercise any supervision over the affairs of the companies in which they were directors, or to have abetted others to register as company directors who would have no involvement in supervising the affairs of the companies, or both.

Of the 36, three have earlier been charged with multiple cheating, money laundering, and other offences in relation to the false PIC claims.

Six were also charged with intentionally perverting the course of justice under Section 204A of the Penal Code, by lying or instigating others to lie to the police during investigations.

For failing to discharge their duties as directors, an offender can be jailed for up to 12 months or fined up to S$5,000 under section 157(3)(b) of the Companies Act. Upon conviction, the offender may also be disqualified from being a director under section 154 of the Companies Act.

By intentionally perverting the course of justice, an offender can be jailed for up to seven years, fined, or face both penalties under section 204A of the Penal Code.