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Publications and Press Releases :
Press Release
: News Archives
Company fined for not informing Inland Revenue
of staff leaving HK
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A shipbroker was fined today (February 4) 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 two employees who had ceased to be employed, and for
failing to withhold money to be paid to the employees.
The defendant, Howe Robinson and Company Limited, pleaded guilty
to two charges in the Eastern Magistrates' Courts and was fined
$ 4,000 for each charge, making a total fine of $8,000.
The defendant employed and paid salary to the two employees from
April 2000 to December 31, 2002. However, the defendant failed to
give advance notice of one month to the CIR regarding the employees'
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 two employees, as required under section
52(7) of the IRO.
The offences were discovered when the Inland Revenue Department
(IRD) reviewed the "Notification by an employer of an employee
who is about to depart from Hong Kong" filed by the defendant
and was unable to recover from the two employees salaries tax totalling
some $210,000.
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.
Ends/Wednesday, February 4, 2004
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