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Suspended jail sentences for property owners over tax evasion
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A couple, who owned properties at Discovery Bay and
Kowloon Bay for letting purposes, were convicted at the Kowloon City
Magistrates' Court today (June 22) of evading Property Tax.
Wong Koon-lun was sentenced to two months' imprisonment,
suspended for two years, fined $50,000 for each count of five charges
making a total fine of $250,000. His wife, Chung Mi-ching, was
sentenced to two months' imprisonment, suspended for two years and
fined a total of $200,000, or $50,000 on each of four charges.
Wong Koon-lun pleaded guilty to five counts of
charges of wilfully with intent to evade tax by making a false statement
or entry in Tax Returns for the years of assessment 1997/98 to 2001/02,
contrary to Section 82(1)(b) of the Inland Revenue Ordinance (IRO).
Chung Mi-ching pleaded guilty to four counts of
charges of wilfully with intent to evade tax by making a false statement or
entry in Tax Returns for the years of assessment 1998/99 to 2001/02.
The court heard that the defendants let their
respectively owned duplex house at Discovery Bay and an industrial flat at
Kowloon Bay. The couple received their monthly rental through their respective
personal bank accounts. Investigation by the Inland Revenue Department (IRD)
revealed that the couple had understated, in their tax returns, nearly half of
their rental income. Wong had understated the rental income from the duplex
house by $1,234,000 in total for the five years of assessment, while Chung
had understated the rental income from the industrial flat by $427,200 for
the four years of assessment. The resultant total tax undercharged was
$146,240 for Wong and $46,052 for Chung.
An IRD spokesman reminded people that tax evasion
was a criminal offence under the IRO. On conviction, the maximum sentence is
three years' imprisonment and a fine of $50,000 on each charge, plus a
further fine equivalent to three times the amount of tax evaded.
Ends/ Wednesday, June 22, 2005
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