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Company fined for not informing IRD of employee ceasing employment


An advertising agency was today (March 6) fined $3,000 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 October 28, 2002, to August 31, 2004. 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 more than $200,000.

A spokesman for the Inland Revenue Department reminded employers to comply with the provisions of Section 52(5) of the IRO to avoid prosecution. The maximum penalty for such an offence, upon conviction, is a fine of $10,000.

Ends/Monday, March 6, 2006