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Press Release
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Property owners fined for failure to notify chargeability
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Two property owners were fined today (April 8) by
Eastern Magistrates' Court after pleading guilty to charges of failing
to inform the Commissioner of Inland Revenue in writing of their
chargeability to Property Tax for the years of assessment 1997/98
to 2000/2001, contrary to section 80(2)(e) of the Inland Revenue
Ordinance.
Each defendant was fined $10,000 and also further fine of $490,000,
making a total fine of $1,000,000 (which represents about 290% of
the total tax undercharged).
During the relevant years, the first defendant, Mr Anwar Edward,
and his wife Madam Wonsono Alida, the second defendant, were the
joint owners of two properties at Broadview Villa, No. 20 Broadwood
Road, Hong Kong (Broadview Villa) and No. 8 Moorsom Road, Hong Kong
(Moorsom Road). The defendants received rental income from letting
of Broadview Villa for the years of assessment 1997/98 and 1998/99
and from Moorsom Road for the years of assessment 1999/2000 and
2000/2001. The rental income assessable to Property Tax amounted
to HK$2,973,868.
The defendants were chargeable to Property Tax for the years of
assessment 1997/98 to 2000/2001 in respect of the rental income.
However, they did not inform the Commissioner of Inland Revenue
in writing of their chargeability to tax until the Inland Revenue
Department issued to them enquiry letters and subsequently the tax
returns. The court was told that the couple's failure to notify
chargeability had resulted in tax undercharged of HK$343,798.
The Inland Revenue Department reminded the public that every person
chargeable to tax for any year of assessment must inform the Commissioner
in writing that he is so chargeable not later than four months after
the end of the basis period for that year of assessment unless he
has already been required to furnish a tax return. A person who
fails to notify chargeability without reasonable excuse shall be
guilty of an offence and is liable to a maximum fine of $10,000
for each charge and a further fine of three times the amount of
tax undercharged.
Ends/Thursday, April 8, 2004
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