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Magician admits to scam involving $1.1m in fake PIC claims

Magician admits to scam involving $1.1m in fake PIC claims

SINGAPORE - A magician who conjured up a ruse to fraudulently claim cash payouts and bonuses under a government productivity scheme pleaded guilty on Friday (Nov 23) after a five-day trial.

S. Chandran, 37, had helped 49 applicants submit fraudulent claims amounting to $1.1 million to the Productivity and Innovation Credit (PIC) scheme between 2013 and 2014. Out of this, the Inland Revenue Authority (Iras), which runs the scheme, disbursed $876,684.

On Friday, Chandran, an IT instructor turned magician, pleaded guilty to 18 charges under the Income Tax Act. Forty other similar charges will be taken into consideration during sentencing.

The PIC scheme was introduced to encourage productivity. It offers tax deductions or cash payouts to companies that have made genuine investments to enhance productivity and innovation, such as by investing in areas such as staff training, information technology or automation equipment.

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As part of the conditions, businesses must employ at least three local employees before they are eligible for the PIC cash payouts.

Chandran, who is also the sole proprietor of a firm called Paradize Consultancy, had helped applicants obtain PIC cash payouts and bonuses even though they did not meet the qualifying conditions. In exchange, he would receive half of the amounts received.

He is now out on bail of $200,000 and will be back in court on Jan 11.

This article was first published in The Straits Times. Permission required for reproduction.

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