Company director gets 20 months’ jail, S$1.52mil penalty for offences related to Iras scheme

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SINGAPORE (The Straits Times/Asia News Network): A director of multiple companies was sentenced to 20 months’ jail and ordered to pay a penalty of S$1,520,800 on Tuesday (Aug 29) for offences committed in relation to a scheme that is meant to encourage businesses to invest in productivity and innovation.

Sofian Osman, 43, pleaded guilty to nine charges of committing fraud in representing that several companies had incurred qualifying expenditure, so the firms could obtain cash payouts under the Productivity and Innovation Credit Scheme. The offences were committed between 2014 and 2017.

Sofian was jailed for eight months and two weeks and ordered to pay $261,600 in penalties in April for a separate charge related to the same scheme. Sofian, the director or de facto director of four companies – Supreme App, Elegance Systems, Ideal Secretarial & Consultancy Services and 3SI Technologies – was in charge of invoicing and all other finance-related aspects of the companies.Iras senior tax prosecutor Andre Ong said Sofian and Iskandar had jointly conceived the idea to assist claimants to make fraudulent claims with the statutory board.

If the claimants accepted their offer, either Sofian or Iskandar would deposit cash into the claimants’ bank accounts based on the qualifying expenditure they intended to state on the PIC Scheme form. The claimants did not actually pay for the PIC Scheme items that they presented as the qualifying expenditure on their forms.

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