Date:

28.11.86

Time:

8.30

-

12.30

Reporter:

PMS

ve

1 [12.02 pm]

2

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CHAIRMAN:

The last item on the agenda is paragraph

8 11 of the Director of Audit's Report. May I call on the

4 8 -

5 Commissioner of Inland Revenue to appear before the Committee.

Welcome, good morning.

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(Pause)

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8

9

sts

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CIR:

CHAIRMAN:

Good morning.

We are dealing with Director of Audit's

11, on whether the Inland Revenue Department

11 Report, paragraph 8

12 needs to do more to come back against tax evasion.

S.

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CIR:

Yes, sir.

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CHAIRMAN:

May we start. Mr Peter Poon.

ject?

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MR POON:

Mr Commissioner.

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CIR:

Yes.

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255

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MR POON:

From the Report of the Director of Audit,

there seems to be a comment that there has been quite few prosecutions

24 in the last 10 years.

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2 2 2 2 2 2 2 2 2 2

25 is fair?

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Would you enlighten us on whether that comment

CIR:

Yes, Mr Poon. I believe the comment is

28 fair in a sense that for the past 12 years we have had a total of

15 prosecution cases, including this year of course, averaging about 30 one in a year. But the point which I must make it clear is that 31 prosecution is a very serious matter and also getting information to 32 start a prosecution, especially in a tax case, is very difficult 33 indeed. Because of all these factors the number of cases selected 34 for prosecution and presented to court is not as many as I would

35 expect it to be. I would say we start an investigation case right

36

at the beginning to see whether or not the case has possible prosecution

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