Company director jailed for false claim under Productivity and Innovation Credit scheme
A director of Exel Mitsui Technologies was sentenced to five weeks in jail on Friday for fraudulently claiming a Productivity and Innovation Credit (PIC) cash payout of $60,000 for his company. This is the second such prosecution since the scheme was introduced in 2010.
Alex Rajan Anthony Samy, 47, was also ordered to pay a penalty of $180,000, which could have been up to four times the payout that he had fraudulently claimed. His company was ordered to pay the same penalty and an $8,000 fine by the same district court on Feb 14.
The PIC scheme gives tax deductions or cash payouts to firms if they take steps to boost productivity including for automation and training.
When he pleaded guilty last week, the court heard that he had falsely declared that the company, which manufactures machine tool accessories, had purchased automation equipment for $168,000 and that it met the qualifying conditions for the cash payout.