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PRESS RELEASE (Source : Government Information Centre)

Company fined for not informing IRD of staff leaving HK

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A securities company was fined today (June 2) for failing to notify the Commissioner of Inland Revenue (CIR) one month before the expected date of departure from Hong Kong for a period exceeding one month of an employee who also ceased to be employed, and for failing to withhold money to be paid to the employee.

The defendant, GFI (HK) Securities L.L.C., pleaded guilty to the above two charges in the Western Magistrates' Courts and was fined $5,000 for each offence, making a total fine of $10,000.

The defendant employed and paid salary to the employee from March 2000 to December 31, 2001. However, the defendant failed to give advance notice of one month to the CIR regarding the employee's departure from Hong Kong as required under section 52(6) of the Inland Revenue Ordinance (IRO). Also, the defendant failed to withhold payment of money to the employee, as required under section 52(7) of the Inland Revenue Ordinance.

The offences were discovered when the Inland Revenue Department (IRD) was unable to recover salaries tax in the sum of some $100,000.

A spokesman for IRD reminds employers to comply with the provisions of section 52(6) and (7) of IRO to avoid prosecution. The maximum penalty for each offence is $10,000.

End/Monday, June 2, 2003

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