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Taxpayer fined for filing incorrect Tax Return

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The Inland Revenue Department (IRD) today (December 18) reminded taxpayers that making an incorrect statement in connection with a claim for any deduction or allowances under the Inland Revenue Ordinance is an offence.

A spokesman for the IRD said that the offender is liable to a maximum fine of $10,000 plus a further fine of treble the amount of tax which has been undercharged in connection with such incorrect statement.

A taxpayer was recently fined for filing incorrect Tax Return for the year of assessment 1999/2000 in making incorrect statements in connection with the claim of dependent parent allowance and disabled dependant allowance.

The defendant pleaded guilty to the charge in Kwun Tong Magistracy on December 12 and was fined $3,000 plus a further fine of $50,472 (equivalent to treble the amount of tax undercharged), which totalled $53,472.

The defendant claimed dependent parent allowance and disabled dependant allowance in the Tax Return-Individuals filed for the year of assessment 1999/2000. She declared that in that year of assessment, she had contributed $12,000 towards the maintenance of each dependant. In fact, the two dependants had received Comprehensive Social Security Assistance from the Social Welfare Department and their maintenance fees were fully covered by the assistance.

"If the taxpayer's claim of allowances had been accepted, the amount of Salaries Tax, which had been undercharged, would have been $16,824," the spokesman said.

 

End/Tuesday, December 18, 2001

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