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Publications and Press Releases :
Press Release
: News Archives
Property owner fined for failure to notify chargeability
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A property owner was today (April 28) fined for failing
to inform the Commissioner of Inland Revenue (CIR) in writing of
his chargeability to Property Tax for the years of assessment 1997-98
to 1999-2000, contrary to Section 80(2)(e) of the Inland Revenue
Ordinance.
The defendant, Mr Kok Joo-li, pleaded guilty to three charges in
the Kwun Tong Magistrates' Courts and was fined HK$10,000 on each
charge and a further fine of HK$100,000, making a total fine of
HK$130,000.
The defendant was one of the owners of the shop located at Kin Tak
House, Hip Wo Street, Kowloon (the Property). The defendant received
rental income from letting of the Property during the years of assessment
1997-98 to 1999-2000. The rental income assessable to Property Tax
was HK$3,153,000.
The defendant was chargeable to Property Tax for the years of assessment
1997-98 to 1999-2000 in respect of the rental income. However, he
did not inform CIR in writing of his chargeability to tax until
the Inland Revenue Department (IRD) issued an enquiry letter and
subsequently the tax returns. The court was told that the defendant's
failure to notify chargeability had resulted in tax undercharged
of HK$401,232.
A spokesman for IRD reminded people that every person chargeable
to tax for any year of assessment must inform CIR 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 28, 2005
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