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Company fined for not informing IRD of staff ceasing employment


A company was fined $3,000 today (April 9) after pleading guilty to a charge of failing to notify the Commissioner of Inland Revenue (CIR) of an employee's cessation of employment with the company one month before such cessation at the Eastern Magistrates' Courts.

The defendant employed and paid salary to the employee during the period from November 22, 1999 to May 19, 2000. However, the defendant failed, without reasonable excuse, to give an advance notice of one month to the CIR regarding the employee's cessation of employment as required under section 52(5) of the Inland Revenue Ordinance (IRO).

The offence was discovered when the Inland Revenue Department (IRD) was unable to recover salaries tax of over $200,000.

A spokesman for IRD reminded employers to comply with the provisions of section 52(5) of IRO to avoid possible prosecution. The maximum penalty for the offence is $10,000.

End/Wednesday, April 9, 2003