Abuse of Jobs Support Scheme
Ministry of FinanceSpeakers
Summary
This question concerns the number of firms conducting self-review declarations for Jobs Support Scheme (JSS) payouts and the extent of detected abuse and penalties. Deputy Prime Minister and Minister for Finance Mr Heng Swee Keat responded that 2,200 employers were identified for administrative review, with July payouts withheld to verify the authenticity of CPF contributions. While most businesses used the scheme properly, the Inland Revenue Authority of Singapore has completed reviews for about half of the flagged cases and referred four employers to the Police. Deputy Prime Minister and Minister for Finance Mr Heng Swee Keat noted that a robust anti-gaming framework utilizing data and whistleblowers is used to detect non-genuine claims. Offenders who defraud the system can be charged under Section 420 of the Penal Code and face up to 10 years of imprisonment and fines.
Transcript
27 Mr Chua Kheng Wee Louis asked the Deputy Prime Minister and Minister for Finance of the employers who have received Jobs Support Scheme payouts (a) what is the number of firms that have conducted a self-review declaration; and (b) what is the number of cases of JSS abuse that have been detected and the range of penalties imposed.
Mr Heng Swee Keat: Since its introduction at the Unity Budget in February, the Jobs Support Scheme (JSS) has supported the wages of over two million local workers in 150,000 businesses. I am heartened that the majority of employers are using the JSS as intended, to retain and pay wages to their local workers.
However, we are aware that a small minority of employers have attempted to game, abuse or defraud the Government for JSS payouts that they are not eligible for. For instance, in order to increase their JSS payouts, some of these employers have made CPF contributions for non-genuine employees or have increased CPF contributions without any actual wage increase. To guard against such cases, the Inland Revenue Authority of Singapore (IRAS), which is the scheme administrator, has instituted a robust anti-gaming framework, leveraging data from various sources as well as information from whistleblowers.
Based on this framework, IRAS has identified 2,200 employers for further administrative review. Such employers had their July JSS payouts temporarily withheld and were required to provide documentations to verify the authenticity and accuracy of CPF contributions made. Once verified, the JSS will be paid out to them as soon as possible. We will continue to take this risk-based approach for future JSS payouts.
To date, IRAS has received documents from and completed the review of about half of the cases. Four employers have been referred to the Police for further investigations. Investigations are still ongoing.
We take a very serious view of employers who attempt to game, abuse or defraud the JSS. Employers who attempt to do so will be severely dealt with. Offenders can be charged under Section 420 of the Penal Code and may face up to 10 years of imprisonment and a fine.