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IRAS referred to Mr Ang Ah Lay’s letter titled “IRAS should account for system’s failure to identify cheating,” published in ST Forum on January 18, 2022.

Any scheme that helps a broad range of firms must strike a careful balance between making it easier for legitimate enterprises to acquire subsidies swiftly and efficiently and doing thorough checks to prevent fraud perpetrated by a minority of applicants. This was the goal of IRAS in administering the Productivity and Innovation Credit (PIC) system.

IRAS implemented preliminary assessments and employed data analytics to find and select high-risk situations for review. Due to such reviews, around 20% of PIC applications had their grants decreased or refused. However, no upfront checks can detect all fake applications without being overly burdensome.

Ex post audits and investigations, including cases uncovered by whistleblowers, are therefore supplemented to recover PIC grants and hold criminals accountable. As of December 31, 2021, IRAS had prosecuted over 60 cases of fraudulent PIC claims.

Mr Lim Chit Foo used nominee directors to set up many shell businesses in a sophisticated plot to cheat the government of PIC payments. A number of these companies were highlighted as potentially dangerous for examination by IRAS systems, and additional inquiry led to the discovery of all associated cases.

IRAS is devoted to protecting public funds and continually analyzes our anti-gaming system to ensure that the risk factors and inspections remain current. IRAS will not hesitate to take legal action against those who misuse and defraud public monies.

To learn more about Singapore incorporation, economy, banking, etc., feel free to call/WhatsApp us at +65 90612851 or email us at aceglobalacct@gmail.com. Alternatively, you may leave us a reply using our contact form below.

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