TAX EVADERS STEAL FROM THE COMMUNITY
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TUESDAY, APRIL 27, 1976
SAYS THE COMMISSIONER
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+THE DOLLAR OF TAX EVADED IS NOT A LOSS TO THE INLAND REVENUE DEPARTMENT OR TO THE HONG KONG GOVERNMENT, BUT IS A DOLLAR STOLEN FROM THE COMMUNITY,+ COMMISSIONER OF INLAND REVENUE, MR. R.V. GIDDY, TOLD A ROTARY CLUB LUNCHEON MEETING TODAY (TUESDAY).
AS A RESULT OF TAX EVASION, MR. GIDDY POINTED OUT THAT EITHER DESERVING PROJECTS HAVE TO BE SHELVED, OR TAX RATES HAVE TO BE RAISED, AND THE BURDEN WOULD BE SHIFTED FROM THE DISHONEST PERSON TO THE HONEST TAXPAYER.
TALKING ABOUT THE EXTENT OF TAX EVASION IN HONG KONG, HE DESCRIBED THE AMOUNT AS +VERY SUBSTANTIAL+ AND +HIGHLY UNACCEPTABLE+. HE WENT ON TO REVEAL THAT IN 1975-76, THE INVESTIGATION BRANCH OF THE INLAND REVENUE DEPARTMENT FINALISED 77 CASES. AND THE AVERAGE UNDERSTATEMENT OF PROFITS PER CASE CAME TO $600,000 OR 74 PER CENT OF THE PROFITS WHICH SHOULD HAVE BEEN RETURNED.
THE COMMISSIONER SAID THAT EVASION IS PRACTISED IN TWO WAYS. IN ONE, THE TAXPAYER FILES FALSE RETURNS, AND IN THE OTHER, HE SIMPLY FILES NO RETURNS AT ALL, IN THE HOPES THAT HE WILL NOT BE FOUND OUT. MR. GIDDY STRESSED THAT BOTH FORMS OF EVASION ARE AGAINST THE LAW.
+WE ARE TODAY GETTING MORE AND MORE PEOPLE INTO THE TAX NET. HOWEVER, I BELIEVE THAT AS A RESULT OF THE SUBSTANTIAL INCREASE IN RECENT YEARS OF INCOMES IN HONG KONG, THAT THERE IS STILL A LARGE BODY OF PERSONS CROSSING THE TAX THRESHOLD WHO SEEM TO THINK THAT TAX IS SOMETHING WHICH HAS NOTHING TO DO WITH THEM, HE POINTED OUT.
TO TACKLE THIS, THE COMMISSIONER SAID, HIS DEPARTMENT IS CURRENTLY EMBARKING ON A CAMPAIGN ENCOURAGING PEOPLE WITH INCOMES THAT COULD MAKE THEM LIABLE TO TAX TO COME FORWARD AND DECLARE THEIR EARNINGS.
APART FROM THIS PERSUASIVE APPROACH, THE INLAND REVENUE DEPARTMENT STARTED A PHASED ANTI-TAX EVASION CAMPAIGN LAST YEAR, WHEN THE MAXIMUM FINES AND PENALTIES FOR EVASION, BOTH FOR FALSE RETURNS AND FAILURE TO FILE RETURNS, WERE SUBSTANTIALLY INCREASED. THE LAW WAS ALSO AMENDED TO FACILITATE OFFICERS OF THE DEPARTMENT IN OBTAINING NECESSARY INFORMATION TO PURSUE INVESTIGATIONS, MR. GIDDY SAID.
+PHASE TWO CONSISTED OF ENCOURAGING PERSONS WHO HAD BEEN GUILTY OF EVASION IN THE PAST TO COME FORWARD AND MAKE A FULL VOLUNTARY DISCLOSURE OF THE UNDERSTATEMENTS AND OMISSIONS,+ HE CONTINUED.
/PRACTISING