Two partners of a printing company were jailed
for 4 months and 3 months and fined a total of $616,000 after being
convicted of tax evasion at Wanchai District Court today (October
9). The defendants, Mr Chow Ying-ki and Mr Lai Shu-lam, former
partners of Tak Shing Printing & Engraving Company, were charged
of signing fraudulent Profits Tax Returns willfully with intent to
evade tax for the years from 1992/93 to 1996/97, contrary to section
82(1)(d) of the Inland Revenue Ordinance.
The Court heard that the defendants, in the
course of preparing tax returns for the years of assessment from 1992/93
to 1996/97, had instructed the return preparer to scale down the operation
of the printing business including the turnover, purchases, subcontracting
and salaries expenses. The company had understated profits totalling
$4,408,506, and thus a total amount of $645,880 tax had been undercharged
for the five assessment years. In passing sentence, Judge Browne said
that immediate custodial sentence should be normally expected for
tax evaders. An IRD spokesman reminded members of the public
that tax evasion is a criminal offence. Upon conviction, the maximum
sentence is three years' imprisonment and a fine of $50,000 for each
charge, plus a further fine of treble the amount of tax undercharged.
End/Wednesday, October 9, 2002
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