Frequently Asked Question
Can PIC be claimed for CCTV Installation
Last Updated 7 years ago
IRAS website explicitly state that CCTV System are not prescribed IT and Automation Equipment and cannot be claimed.
Some vendors claims that CCTV are PIC Claimable and promised the customers that. However, it's the responsibility of the Business Owners to file for PIC claims with IRAS and not the vendors. Any successful claims may also be subjected to clawback by IRAS and may result in the Business Owners (Not the Vendors) being prosecuted for fraudulent PIC claims if any false information are furbished in the claim process.
However, IRAS provide avenues for Business Owners to apply for prior approval for any items not within the prescribed list on a case-by-case basis if all the following criteria are met:
If the CCTV System is not use for security measures but in order to automate the business' work process(es) and to enhance productivity of the business, IRAS may grant approval for it.
Visit here to understand more.
https://www.iras.gov.sg/irashome/Schemes/Businesses/Productivity-and-Innovation-Credit-Scheme/Common-Mistakes-to-Avoid-and-Things-to-Take-Note-of/
Taxman claws back millions in fraudulent PIC claims
Ref:- http://www.straitstimes.com/business/taxman-claws-back-millions-in-fraudulent-pic-claims
488 cases investigated for PIC fraud: Heng Swee Keat
Ref:- http://www.channelnewsasia.com/news/singapore/488-cases-investigated/2666830.html
INVESTIGATIONS TO PRODUCTIVITY AND INNOVATION CREDIT SCHEME CLAIMS
"To address these abuses, IRAS conducts rigorous compliance programmes to review and audit PIC claims. Relying on the experiences of IRAS investigators and advanced analytics, IRAS has investigated or audited about 71,000 claims or around 30% of the PIC Cash Payout claims made from Years of Assessment 2011 to 2015. 1,500 of these claims investigated or audited required clawback. As for the amount of cash payout clawed back, for Years of Assessment 2011 to 2014, IRAS has clawed back $11 million. $8 million has been recovered to date.
Taking the Year of Assessment 2014 for illustration, out of the 10,000 claims investigated or audited, IRAS has clawed back $7 million worth of improper claims from 500 cases, of which $5 million have been recovered to date.
The government takes a serious stance on PIC abuse. IRAS will not hesitate to take stern enforcement actions against these businesses and any intermediaries helping them."
Ref:- http://www.mof.gov.sg/news-reader/articleid/1590/parentId/59/year/2016?category=Parliamentary%20Replies
Some vendors claims that CCTV are PIC Claimable and promised the customers that. However, it's the responsibility of the Business Owners to file for PIC claims with IRAS and not the vendors. Any successful claims may also be subjected to clawback by IRAS and may result in the Business Owners (Not the Vendors) being prosecuted for fraudulent PIC claims if any false information are furbished in the claim process.
However, IRAS provide avenues for Business Owners to apply for prior approval for any items not within the prescribed list on a case-by-case basis if all the following criteria are met:
- The equipment automates or mechanises the business' work process(es) and
- The equipment enhances productivity of the business (e.g. reduced man-hours, more output or improved work processes)
If the CCTV System is not use for security measures but in order to automate the business' work process(es) and to enhance productivity of the business, IRAS may grant approval for it.
Visit here to understand more.
https://www.iras.gov.sg/irashome/Schemes/Businesses/Productivity-and-Innovation-Credit-Scheme/Common-Mistakes-to-Avoid-and-Things-to-Take-Note-of/
Taxman claws back millions in fraudulent PIC claims
"THE taxman has taken action over 245 fraudulent claims under a wide-ranging scheme that helps companies increase productivity through new technology and innovation.
These wrongful claims under the Productivity and Innovation Credit (PIC) scheme date back to when it was introduced in 2010.
The cash payouts and bonuses clawed back from - or not paid to - these claimants totalled about $10 million as of May 31, the Inland Revenue Authority of Singapore (Iras) said. The amount includes penalties and fines."
These wrongful claims under the Productivity and Innovation Credit (PIC) scheme date back to when it was introduced in 2010.
The cash payouts and bonuses clawed back from - or not paid to - these claimants totalled about $10 million as of May 31, the Inland Revenue Authority of Singapore (Iras) said. The amount includes penalties and fines."
Ref:- http://www.straitstimes.com/business/taxman-claws-back-millions-in-fraudulent-pic-claims
488 cases investigated for PIC fraud: Heng Swee Keat
"SINGAPORE: The Inland Revenue Authority of Singapore (IRAS) has investigated 488 cases for fraud under the Productivity and Innovation Credit (PIC) scheme as of Dec 31, 2015, Finance Minister Heng Swee Keat said in a written Parliamentary reply on Tuesday (Apr 5).
He said eight of those cases resulted in prosecution. They involved a total of S$213,000 in cash payouts. Another three cases are pending trial. The 11 court cases do not involve consultants, Mr Heng added. "
He said eight of those cases resulted in prosecution. They involved a total of S$213,000 in cash payouts. Another three cases are pending trial. The 11 court cases do not involve consultants, Mr Heng added. "
Ref:- http://www.channelnewsasia.com/news/singapore/488-cases-investigated/2666830.html
INVESTIGATIONS TO PRODUCTIVITY AND INNOVATION CREDIT SCHEME CLAIMS
"To address these abuses, IRAS conducts rigorous compliance programmes to review and audit PIC claims. Relying on the experiences of IRAS investigators and advanced analytics, IRAS has investigated or audited about 71,000 claims or around 30% of the PIC Cash Payout claims made from Years of Assessment 2011 to 2015. 1,500 of these claims investigated or audited required clawback. As for the amount of cash payout clawed back, for Years of Assessment 2011 to 2014, IRAS has clawed back $11 million. $8 million has been recovered to date.
Taking the Year of Assessment 2014 for illustration, out of the 10,000 claims investigated or audited, IRAS has clawed back $7 million worth of improper claims from 500 cases, of which $5 million have been recovered to date.
The government takes a serious stance on PIC abuse. IRAS will not hesitate to take stern enforcement actions against these businesses and any intermediaries helping them."
Ref:- http://www.mof.gov.sg/news-reader/articleid/1590/parentId/59/year/2016?category=Parliamentary%20Replies