| Publications
and Press Releases :
Press Release
: News Archives
Businessman jailed 15 months for tax evasion
******************************************************
A businessman convicted in the District Court of evading profits
tax was today (December 11) jailed for 15 months and fined $1.306
million, representing about 50% of the tax evaded.
The defendant, Yu Hin-man, 49, was
the sole proprietor of Hin Lee Plastic Silk Screen Printing Adv.
Co (Hin Lee). For the years of assessment 1994-95 to 1998-99, the
defendant instructed his part-time accountant to inflate the purchase
in the accounts of his company. The defendant fabricated invoices
and delivery orders of the purported suppliers to cover up the inflated
purchases for the year of assessment 1997-98.
The profits of Hin Lee for the relevant
years were understated by $17,640,070 and the tax evaded amounted
to $2,616,742. The defendant was convicted of 10 counts of tax evasion.
The charges comprised four counts of omitting from his tax returns
of the profits of Hin Lee, contrary to section 82(1)(a) of IRO;
five counts of authorising the preparation or maintenance of false
accounts, contrary to section 82(1)(f) of IRO; and one count of
making use of or authorising the use of fraud, art or contrivance,
to falsely claim payments made to suppliers in the accounts, contrary
to section 82(1)(g) of IRO. He was also convicted of one count of
cheating the Public Revenue, contrary to Common Law and section
101E of the Criminal Procedure Ordinance.
A spokesman for the Inland Revenue
Department (IRD) reminded taxpayers that tax evasion was a criminal
offence under the Inland Revenue Ordinance (IRO). 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.
Ends/Tuesday, December 11, 2007
Issued at HKT 17:25
NNNN
|
|