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Inland Revenue Department adopts zero tolerance
policy against tax evasion
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The Inland Revenue Department
has adopted a zero tolerance policy against tax evasion and will
try to complete investigations into every suspected tax evasion
case within the shortest timeframe possible.
The Commissioner of Inland Revenue,
Mrs Alice Lau, reminded people that tax evasion was a criminal offence
under the Inland Revenue Ordinance and the department would carry
out prompt investigation and institute prosecution action as appropriate.
Upon conviction, the maximum penalty
for each charge is three years' imprisonment and a fine of $50,000
plus a further fine of three times the amount of tax evaded.
Mrs Lau's reminder followed a court
case today (June 25) under which a property owner, Mr Lo Wang-kay,
was convicted and jailed for 12 months. He was also fined $480,000
representing about twice the amount of tax evaded.
The court heard that Mr Lo rented
out a residential flat and three car parking spaces and received
monthly rental through his bank account. In his tax returns for
six years of assessment he declared that none of his properties
were rented out. He also submitted a false written reply to the
department's request for information on the use of the car parking
spaces. The total amount of tax evaded was $244,851.
Mrs Lau said this was the first case
prosecuted and convicted under section 82(1)(e) of the Inland Revenue
Ordinance in respect of giving false answers to requests for information
made in accordance with section 51 of the ordinance. The court imposed
a six-month sentence for this offence to run consecutively with
the jail term for other offences, making an effective sentence of
12 months.
Deputy District Judge Johnny Chan
pointed out that there was no interruption in the department's investigation
and there was no delay in the present case, having considered the
chronology of investigation provided by the prosecution.
"The department takes
every measure to ensure fast handling of tax evasion cases. There
is a stringent requirement on evidence in criminal prosecution.
Depending on the complexity of the case and transactions involved,
the department needs a certain amount of time to collect adequate
evidence from various possible sources," Mrs Lau said.
"Typically, we would have
to locate the defendant's bank accounts, trace the fund flow, examine
documents, interview the witnesses and taking statements from them.
We would also consult legal opinion to assess if there is sufficient
evidence to initiate criminal prosecution.
"The degree of co-operation
from the taxpayer and related parties, and the response of the witnesses
can directly affect the progress of the investigation. The time
needed to complete each case can therefore be different," she
said.
Ends/Monday, June 25, 2007
Issued at HKT 18:25
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