13
THURSDAY, NOVEMBER 14, 1991
THE COMMISSIONER SAID FIELD AUDIT WAS PART OF
EFFORTS TO COMBAT VOLUNTARY COMPLIANCE.
TAX
EVASION AND
PROMOTE
IRD'S ON-GOING
A GREATER DEGREE OF
"PRIMARILY AUDIT INVOLVES THE REDEPLOYMENT
OF PROFESSIONAL
TAX
STAFF FROM THE "OFFICE" TO THE "FIELD" TO VERIFY THE ACCURACY OF
HE EXPLAINED. RETURNS FILED WITH THE DEPARTMENT,
POLICY "BELT-TIGHTENING" HE SAID IN VIEW OF THE GOVERNMENT'S
TRADITIONAL ASSESSING AND THE DEPARTMENT'S INCREASING WORKLOADS, THE
DISCLOSED APPROACH OF CHECKING IN DETAIL THE ACCURACY OF INFORMATION IN TAX RETURNS AND USING THIS TO DETERMINE REVENUE COLLECTIONS WAS LONGER WHOLLY APPROPRIATE.
NO
"WE HAVE HAD TO RE-THINK COMMISSIONER REMARKED
THE
WAY
WE
DO
OUR JOB,
||
THE
HE POINTED OUT THAT MORE THAN HALF OF THE RETURNS IRD RECEIVED, AND VIRTUALLY ALL CORPORATION RETURNS, WERE LODGED
ACCOUNTANTS.
BY PROFESSIONAL
"DETAILED EXAMINATION
OF THESE RETURNS
CAN RESULT IN ONE IN MANY CASES THIS IS
ACCOUNTANT DOUBLE CHECKING THE WORK OF ANOTHER NOT A PRODUCTIVE EXERCISE,
It
HE SAID.
AND MR AU-YEUNG POINTED OUT THAT EXPERIENCES BOTH IN HONG KONG
IT WAS USUALLY OVERSEAS HAD CONFIRMED THAT WHERE PROBLEMS EXISTED BECAUSE OF A FAILURE TO DISCLOSE INFORMATION.
IT MEANT THAT PROBLEMS
REPORTED
AROUND
WAS
WHAT CLASSIFIED WAS AIMED AT
NOT WERE CENTRED IN RETURNS, BUT IN WHAT IS OMITTED, INCORRECTLY
HE NOTED, ADDING THAT FIELD AUDIT OR OVERCLAIMED, ADDRESSING THIS SITUATION BY GOING TO THE HEART OF THE PROBLEM.
MR
AU-YEUNG
SAID THE IRD'S IN AUDIT-ORIENTATED
ΤΟ ACHIEVE THIS NEW DIRECTION, PROFITS TAX UNIT WOULD BECOME INCREASINGLY MORE
THE COMPREHENSIVE WOULD COMPLEMENT AND YEARS THE NEXT FEW INVESTIGATIONS CARRIED OUT BY THE DEPARTMENT'S INVESTIGATIONS UNIT.
"THIS,
OUR
WE EXPECT, WILL RESULT IN A MORE PRODUCTIVE USE OF
ITS INFANT LIMITED STAFF RESOURCES. EVEN NOW, WITH AUDIT STILL IN STAGE, WE ARE BEGINNING TO SEE RETURNS FOR OUR EFFORTS," HE SAID.
THE OF
AUDIT, FIELD WITH CONCURRENTLY
STREAMLINE ITS COMMISSIONER SAID HIS DEPARTMENT WAS TAKING STEPS TO ASSESSING PROCEDURES.
HE
THE INTRODUCTION
EXPLAINED THAT ALL RETURNS WERE NOW SUBJECT TO A PROCESS WHICH DETERMINED WHETHER THEY WERE ALLOCATED TO ONE FOLLOWING THREE CATEGORIES :
*
SELECTION
OF
THE
THE NORMAL LANE FOR RETURNS INDICATING THE NEED FOR IN-DEPTH EXAMINATION AND ASSESSMENT;
THE
FAST LANE FOR
RETURNS
REQUIRING
STRAIGHTFORWARD TECHNICAL ADJUSTMENTS; AND
RELATIVELY
THE THIRD