XN000022-1977-09-07 — Page 4

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WEDNESDAY, SEPTEMBER 7, 1977

SALARIES TAX PAYABLE BY EMPLOYEES OF

MULTI-NATIONAL CORPORATIONS

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THE INLAND REVENUE DEPARTMENT TODAY DREW THE ATTENTION OF THE PUBLIC TO THE NEED TO DECLARE THE FULL AMOUNT OF INCOME DERIVED FROM EMPLOYMENT IN HONG KONG IRRESPECTIVE OF WHERE THE EMOLUMENTS ARE PAID OR WHO PAID THEM.

A DEPARTMENT SPOKESMAN EXPLAINED THAT UNDER THE INLAND REVENUE ORDINANCE ALL INCOME FROM SERVICES RENDERED IN HONG KONG IS SUBJECT TO SALARIES TAX.

HE POINTED OUT THAT CASES RECENTLY INVESTIGATED BY THE DEPARTMENT HAD BROUGHT TO LIGHT INSTANCES WHERE EMPLOYEES OF MULTI- NATIONAL CORPORATIONS HAD FAILED TO DECLARE SALARIES PAID INTO BANK ACCOUNTS OUTSIDE HONG KONG BY COMPANIES ASSOCIATED WITH THEIR HONG KONG EMPLOYER.

+IN SOME CASES THIS WAS A DELIBERATE ATTEMPT TO EVADE HONG KONG TAX AND COULD RENDER THE EMPLOYEE SUBJECT TO SEVERE PENALTIES OR PROSECUTION, THE SPOKESMAN SAID.

+ IN OTHER CASES THIS MAY HAVE BEEN AN INNOCENT MISTAKE.+

HE URGED THAT ANY PERSONS WHO THINK THAT THEY MIGHT HAVE UNDERSTATED THEIR INCOME TO GET IN TOUCH WITH THE DEPARTMENT AS SOON AS POSSIBLE EITHER BY WRITING OR CALLING MR. WONG HO-SANG ON TELEPHONE NOS. 5-222151 EXTENSION 75 OR 5-95731 EXTENSION 205.

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