THURSDAY, SEPTEMBER 7, 1989
THE
CORE
COMMISSIONER NOTED THAT THERE WOULD ALWAYS BE A HARD OF TAXPAYERS WHO REGULARLY ACCEPT THEIR ESTIMATED ASSESMENTS AND FAIL TO LODGE RETURNS.
"THESE CASES, WHICH I SHALL REFER TO AS 'PERSISTENT DEFAULTER CASES. CAUSE GREATER CONCERN BECAUSE THE ASSESSOR IS OFTEN UNABLE TO DETERMINE WHETHER THE FAILURE TO LODGE RETURNS IS MOTIVATED BY SUCCESSIVE UNDER-ESTIMATIONS OF PROFIT, OR BY SOME LESSER FACTOR. HE SAID.
"
MR AU-YEUNG POINTED OUT THAT THE PRACTICE OF TAXPAYERS FAILING TO LODGE THEIR RETURNS AND SIMPLY PAYING ESTIMATED ASSESSMENTS WHILE THOSE ESTIMATED PROFITS ARE LESS THAN THEIR ACTUAL PROFITS WAS NO DIFFERENT IN PRINCIPLE FROM EVASION PERPRETRATED THROUGH THE LODGEMENT OF FALSE OR INCORRECT RETURNS.
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"IN BOTH SITUATIONS IT WOULD SEEM THAT THE INTENT IS TO EVADE PAYMENT OF THE LAWFUL TAX LIABILITY, WHICH WE ALL KNOW IS AN OFFENCE, HE STRESSTED.
"REGRETFULLY SUCH PRACTICES, PARTICULARLY IN THE CASE OF TAXPAYERS WITH LARGE ASSESSABLE PROFITS WHO DO NOT LODGE RETURNS UNTIL THE POINT IS REACHED WHERE SUCCESSIVE ESTIMATED ASSESSMENTS ARE IN EXCESS OF ACTUAL PROFITS. HAVE SHOWN A CONSIDERABLE INCREASE IN RECENT YEARS," MR AU-YEUNG NOTED.
"I DO NOT INTEND TO ALLOW THIS MALPRACTICE TO GROW UNCHECKED AND THE MATTER WILL CONTINUE TO BE PURSUED IN THE COMING YEAR. APPROPRIATE PENALTIES WILL OF COURSE BE IMPOSED. HE ADDED.
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THE COMMISSIONER SAID WHILE HE HAD NOT, IN THE MAJORITY OF CASES, IMPOSED PENALTIES AT ANYWHERE NEAR THE MAXIMUM PERMITED BY LAW, THE APPROPRIATE LEVEL OF PENALTIES HAD BEEN CONSIDERED BY THE BOARD OF REVIEW ON SEVERAL OCCASIONS.
"THE BOARD HAS EXPRESSED THE OPINION THAT TAKING INTO ACCOUNT THE GRAVITY OF THE CASE, THE LOSS SUFFERED BY THE REVENUE. THE TAXPAYER'S DEGREE OF CO-OPERATION, THE SOPHISTICATION OF THE TAXPAYER AND HIS BUSINESS AND THE ABSENCE OF EVIDENCE THAT THE FAILURE OF THE TAXPAYER WAS PART OF A DELIBERATE SCHEME TO CONCEAL PROFITS,
THE APPROPRIATE BENCHMARK FOR PENALTY SHOULD BE 100 PER CENT OF THE TAX THAT WOULD OTHERWISE HAVE BEEN PAYABLE, " HE SAID,
"THIS PENALTY MAY BE EITHER INCREASED OR DECREASED FROM THE BENCHMARK TO HAVE REGARD TO CULPABILITY FACTORS." HE ADDED.
MR AU-YEUNG SAID THAT HE EXPECTED ALL TAXPAYERS TO LODGE TIMELY RETURNS DECLARING THEIR TRUE PROFITS, AND WHEREE TAX REPRESENTATIVES WERE CONCERNED HE REALISED THAT IN THE PRESENT LABOUR MARKET THERE WERE STAFFING PROBLEMS.
TIGHT
HOWEVER. HE REMINDED TAX REPRESENTATIVES THAT THE SHORTAGE SITUATION WAS NOT RESTRICTED TO THE PRIVATE SECTOR.
STAFF
"IN ORDER FOR ME TO MEET MY WORK TARGETS AND BUDGETARY FORECASTING REQUIREMENTS I MUST HAVE ALL RETURNS LODGED IN ACCORDANCE WITH THE AGREED PROGRAMME.
"THEREFORE, APART FROM VERY EXCEPTIONAL CASES, EXTENSIONS OF TIME BEYOND THOSE ALREADY AGREED CANNOT BE GRANTED." THE COMMISSIONER SAID.
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