Taken from HARDWAREZONE Forum.. Please be aware!! This issue is also on front page of todays Sunday Times, that IRAS is looking into such scams so dont fall into this trap! You are running a business in a competitive environment in Singapore. You are struggling to survive and cash are running out. Then someone come to you and say: Want to earn some quick cash? If you buy this software from me at $15,000, you will be getting back $24,000 from the government. I can even help you send in the application as long as you buy from me. No money now? Dont worry, since we are buddies, you can pay me back when you get the money from the government. Does this thing sounds too good to be true? It sure is. This is a typical example of exploitation of the Productivity and Innovation Credit (PIC) scheme in Singapore. As part of the effort to raise productivity in Singapore, the Singapore government introduces the PIC scheme in 2011. In a nutshell, as long as you fulfill certain criteria (which are not that difficult by the way), you are eligible to claim up to $15,000 1-for-1 bonus and 60% cash payout, i.e. $9,000 if you incur expenses buying computers and software etc under the scheme (this gives you the $24,000). Please Google Productivity and Innovation Credit if you want to know the full list of items. Over the past few weeks, I have heard more than 3 instances of people exploiting the scheme. These people are the vendors who sell software which are practically useless to businesses, severely overpriced (some even priced the software at flat $15,000), and the marketing message is based on the ability to earn $9,000 out from the governments pocket, and nothing more. Before you tell me that there is nothing wrong with this arrangement because both benefited - the vendor got $15,000 and the customer get $9,000 and everybody is happy, please read more about the concept of opportunity cost in Economics 101. The customer who get $9,000 could have spent the $15,000 on things that really matter for the business - like upgrading of computers or training on how to sell better, and not on some useless software where your business dont even need. This is the whole idea behind the PIC scheme, to encourage businesses to invest money in stuffs that will increase productivity. Moreover, even if the business really need such a software, given that most businesses who are unaware of such a scheme are small businesses, better options are readily available in the market, at How to look out for such unethical practices of vendor: 1. They will entice you into buying their software and claim that you can earn $9,000; 2. They will handle all the administrative procedures in the claim and you just have to sign the form (so that you wouldnt even know the free money is from the PIC scheme); 3. They will bill you a fraction of the total cost, and the rest after you receive the claim; 4. You cannot find anything about the software or the vendor in Google; and 5. It is severely overpriced - Most small businesses do not need a software that cost $10,000 to $15,000. There are always much cheaper alternatives. Conclusion: If anyone tells you that you can earn quick cash from the government and he will help you do that, it is most probably the PIC scheme. Find out more about this scheme from IRAS.
Posted on: Sun, 06 Apr 2014 13:33:14 +0000
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