S $ 32 million in disallowed job program payments to 1,300 employers for March: IRAS
SINGAPORE: The Singapore Revenue Authority (IRAS) said on Monday (May 31) that it had withheld S $ 32 million from the Supported Employment Program (JSS) and Job Growth Incentive ( JGI) to 1,300 employers for the month of March.
Ten cases of suspected abuse of JSS have also been referred to police for investigation, IRAS said in a press release.
About S $ 16 million was denied for each program, with 500 employers affected by JSS and 800 affected by JGI.
Overall, IRAS withheld S $ 85 million from 2,600 employers for additional checks for March payments under the JSS and JGI. Reviews were concluded for over 800 JSS installments and nearly 1,100 JGI installments for the tranche.
The employers concerned will have to submit supporting documents to the IRAS to justify their eligibility for the schemes.
This “is part of the IRAS anti-gambling efforts to ensure that JSS and JGI payments are disbursed fairly and correctly,” the authority said.
“These 2,600 employers represent about 2 percent of all employers eligible for JSS and JGI payments,” IRAS said.
“Employers will receive their JSS and JGI payments once IRAS verifies the authenticity and accuracy of the information submitted.
“Their payments would be adjusted or denied if any issues are detected during the review.”
S $ 52 million of the withheld payments fall under the JSS, while the remaining S $ 33 million fall under the JGI.
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The JSS was introduced as part of the unit’s budget in February 2020 to provide salary support for employers to retain local employees amid the COVID-19 crisis. All active employers except local and foreign government organizations and representative offices are eligible for JSS.
JGI helps employers develop local hiring “to create good long-term jobs for locals,” IRAS said on its website. It is available from September 2020 to September 2021.
About S $ 44 million in JSS payments have been refused since the program was implemented.
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During the review process of JSS and JGI payments, IRAS detected a variety of alleged abuses.
“Examples include employers making contributions to the Central Provident Fund (CPF) for non-genuine employees, inflating CPF contributions for employees without an actual pay increase, and maintaining CPF contributions for employees on reductions. salary, ”he said.
“IRAS adjusted payments from employers who easily corrected their employees’ CPF contributions in error. Some employers had chosen not to respond to IRAS requests for clarification, thereby forgoing their payments.
“A small group of employers provided what appeared to be fabricated documents in an attempt to justify their eligibility for the plan.”
IRAS referred 10 cases to the police for investigation.
“Serious cases of suspected abuse would be referred to the police for further investigation,” the authority said.
Police are currently reviewing the 10 referred cases all of which fall under the JSS.
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“IRAS has a robust anti-gambling framework that leverages data analysis and risk profiling to identify risks and prevent abuse,” the authority said.
“A dedicated team has also been put in place to review the accuracy of the CPF amounts for genuine employees based on actual wages paid.
“IRAS will continue to review employers’ eligibility for subsequent JSS and JGI payments.”
The IRAS added that it had received around 500 reports from whistleblowers of alleged abuses of JSS and JGI by employers.
Employers who abuse these plans can face the offense of cheating and face up to 10 years in prison and a fine.
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