Income Tax Act 1947 · 2020 Revised Edition · Part 20 · Offences and Penalties
96A. Serious fraudulent tax evasion and action to obtain PIC bonus
Feedback & supportLast amended by an amending law of 2023. 2 amendments in all.
Any person who wilfully with intent to evade or to assist any other person to evade tax, or to obtain or to assist any other person to obtain a PIC bonus or a higher amount of PIC bonus, or both —
prepares or maintains or authorises the preparation or maintenance of any false books of account or other records or falsifies or authorises the falsification of any books of account or records; or
makes use of any fraud, art or contrivance or authorises the use of any such fraud, art or contrivance,shall be guilty of an offence for which, on conviction, the person shall pay a penalty of 4 times —
the amount of tax;
the amount of PIC bonus; or
the amount of tax and the amount of PIC bonus,as the case may be, that has been undercharged, obtained, or undercharged and obtained as a result of the offence, or that would have been undercharged, obtained, or undercharged and obtained if the offence had not been detected, and shall also be liable to a fine not exceeding $50,000 or to imprisonment for a term not exceeding 5 years or to both.
When an individual has been convicted for —
2 or more offences under this section, section 37M(4) or section 37S(4); or
one offence under this section and one offence under section 96, 37M(3) or 37S(3),the imprisonment the individual shall be liable to shall not be less than 6 months.
Where in any proceedings under this section it is proved that any false statement or entry is made in any books of account or other records maintained by or on behalf of any person, that person is presumed, until the contrary is proved, to have made that false statement or entry with intent to evade tax, to obtain a PIC bonus or a higher amount of PIC bonus, or both, as the case may be.
The Comptroller may compound any offence under this section and may before judgment stay or compound any proceedings thereunder.
Comptroller
“Comptroller” means the Comptroller of Income Tax appointed under section 3(1) and includes, for all purposes of this Act except the exercise of the powers conferred upon the Comptroller by sections 34F(9), 37L(7), 37M(5), 67(1)(a), 95, 96, 96A and 101, a Deputy Comptroller or an Assistant Comptroller so appointed;
In this section, a reference to the amount of PIC bonus that has been obtained by a person as a result of an offence, or that would have been so obtained if the offence had not been detected, excludes an amount of PIC bonus that the person is entitled to.
In this section, “PIC bonus” means a payment under section 37H.