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Press Release
: News Archives
Property owners jailed for tax evasion
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Three property owners were convicted of tax evasion
charges at the Wanchai District Court today (December 5). They were
each sentenced to two months' immediate imprisonment and fined $100,000.
The first defendant, Tsang Ka-yui, aged 57, and the second defendant,
Tsang Ka-wing, aged 52, are brothers. The third defendant, Fung
Lai-seung, aged 47, is the wife of the younger brother.
The defendants jointly own a property at Fa Yuen Street, while the
first and second defendants are also joint owners of a property
at Wong Chuk Street. The first and second defendants were each charged
with nine counts and the third defendant was charged with five counts
of wilfully with intent to evade property tax. They pleaded guilty
to all charges.
The Court heard that the defendants received rental income totalling
$6.8 million from letting the two properties during the years of
assessment from 1995/1996 to 1999/2000. They wilfully with intent
evaded tax by creating sham head tenants and shifting part of the
rental income to the sham head tenants. The second defendant operated
joint savings accounts with the sham head tenants as the depositories
for the rental income and subsequently shared the proceeds with
the other two defendants.
A spokesman for the Inland Revenue Department said tax evasion is
a criminal offence. The maximum penalty under the Inland Revenue
Ordinance is three years' imprisonment and a fine of $50,000 on
each charge, plus a further fine equivalent to three times of the
tax evaded.
Ends/Friday, December 5, 2003
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