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Taxpayer fined for filing incorrect tax return

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A taxpayer was fined a total of $10,000 after pleading guilty at the Fanling Magistracy today (January 18) to a charge of making an incorrect tax return.

The defendant was charged with filing an incorrect tax return for the year of assessment 2005-2006 by making an incorrect statement in connection with the claim for elderly residential care expenses, contrary to section 80(2)(b) of the Inland Revenue Ordinance (IRO).

She declared that in the year of assessment 2005-2006, she had paid residential care expenses of $42,000 to a residential care home for maintaining a dependant. Investigations by IRD found that the dependant passed away on December 17, 2003.

A spokesman for the Inland Revenue Department reminded the public that making an incorrect statement in connection with a claim for any deduction or allowance without a reasonable excuse was an offence under the IRO.

Upon conviction, the maximum penalty is a fine of $10,000 and a further fine of triple the amount of tax undercharged. If fraud is involved, the offender is liable to the same fines and imprisonment for three years.

Ends/Friday, January 18, 2008

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