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(Source : Information Services Department)

Company director jailed for nine months for tax evasion


     A company director, convicted on January 31 at the District Court of evading profits tax, was sentenced today (February 4) to nine months' imprisonment and fined a total of $900,000 after being remanded in custody for four days. The fine imposed is equivalent to 93 per cent of the tax evaded.

     The defendant, aged 51, was the director and shareholder of a company which was involved in the trading of drinks. An investigation by the Inland Revenue Department (IRD) revealed that the defendant fabricated 397 invoices of four suppliers to inflate the purchases of her company for the six years of assessment 2002/03 to 2007/08. The profits of the company for the relevant years were understated by $5,772,691 and the tax evaded amounted to $965,276.

     The defendant was convicted of six counts of tax evasion. She was charged with wilfully, with intent to assist the company to evade tax, preparing or maintaining, or authorising the preparation or maintenance of, false books of accounts or other records, thereby overstating the company's purchases for the years of assessment 2002/03 to 2007/08, contrary to section 82(1)(f) of the Inland Revenue Ordinance (IRO) (Cap 112).

     A spokesman for the IRD reminded taxpayers that tax evasion is a criminal offence under the 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/Monday, February 4, 2013
Issued at HKT 14:55