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Company fined for not informing IRD of employee ceasing employment


A company carrying on a technology development business was fined $5,000 today (January 26) in the Eastern Magistrates' Courts after pleading guilty to a charge of failing to notify the Commissioner of Inland Revenue (CIR) about an employee's cessation of employment with the company.

The defendant employed the employee from May 2000 to April 12, 2002. However, the defendant failed to give advance notice 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 CIR was unable to recover salaries tax of over $200,000.

An Inland Revenue Department spokesperson reminds employers to comply with the provision of Section 52(5) of the IRO to avoid prosecution. The maximum penalty for such a offence is $10,000.

Ends/Wednesday, January 26, 2005