Robotic ice-cream machine supplier convicted of PIC fraud

SINGAPORE: A company director and his firm Robofusion Asia, which supplies robotic ice-cream machines, were convicted on Thursday (Apr 27) of giving false information when making an application for a Productivity and Innovation Credit (PIC) cash payout.

The court ordered Yong Tai Kok to pay a penalty of S$120,000 plus a S$4,000 fine, while Robofusion had to pay S$60,000, which is the amount of cash payout wrongfully obtained, said the Inland Revenue Authority of Singapore (IRAS).

Its investigations showed that Yong used the names of two people who were not Robofusion employees in a PIC application form dated May 23, 2013.

The company also made contributions to their Central Provident Fund (CPF) accounts so it would look like the two were Robofusion’s local employees.

For a company to be eligible for apply for the PIC, which is administered by IRAS, it must have employed at least three local employees. Under the scheme, businesses can receive tax deductions or cash payouts for making investments to enhance productivity and innovation.

In this case, Robofusion’s PIC cash payout application was for the purchase of a new ice-cream kiosk costing S$93,000, as well as for a “Software License and Implementation for Cashless Payment System and Kiosk Payment Integration” which cost S$14,980.

The amount of PIC cash which was wrongfully obtained was $60,000, IRAS said.

The tax authority said it takes a serious view of any attempts by claimants, vendors or consultants to defraud the Government. “Offenders convicted of PIC fraud will have to pay a penalty of up to four times the amount of cash payout fraudulently obtained, and a fine of up to $50,000 and/or imprisonment of up to five years,” said IRAS.

It added that businesses or individuals are encouraged to immediately disclose any past tax mistakes as these would be mitigating factors when IRAS considers action to be taken.