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Company fined for not informing IRD of staff leaving HK

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A company carrying on business in golf training and management was fined today (December 10) for failing to notify the Commissioner of Inland Revenue (CIR) about an employee's cessation of employment with the company and departure from Hong Kong and for failing to withhold money to be paid to the employee.

The defendant pleaded guilty to the two charges in the Western Magistrate's Court and was fined $9,000 for each offence, making a total fine of $18,000.

The defendant employed and paid salary to the employee during the period from October 21, 1999 to January 4, 2001. However, the defendant failed to give advance notice to the CIR regarding the employee's cessation of employment and departure from Hong Kong as required under section 52(6) of the Inland Revenue Ordinance. Also, the defendant failed to withhold payment of money to the employee as required under section 52(7) of the Inland Revenue Ordinance.

This matter was uncovered when the CIR was unable to recover salaries tax in the sum of $186,483.

A spokesperson of the Inland Revenue Department reminds employers to comply with the provisions of section 52(6) and (7) of the Inland Revenue Ordinance to avoid prosecution. The maximum penalty for each offence is $10,000.

End/Monday, December 10, 2001

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