XN000022-1978-12-03 — Page 3

Tyra

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DRAGNET AGAINST TAX EVADERS BEING TIGHTENED

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THE INVESTIGATION UNIT OF THE INLAND REVENUE DEPARTMENT IS GRADUALLY TIGHTENING THE DRAGNET AGAINST TAX EVADERS WITH AN INCREASE IN STAFF.

OFFICERS EXPERIENCED IN TAXATION WORK HAVE BEEN TRANSFERRED FROM OTHER UNITS OF THE DEPARTMENT TO FILL NEW POSTS IN THE INVESTIGATION UNIT WHICH IS ALSO WIDENING THE SCOPE OF ITS WORK AGAINST TAX EVASION.

AT PRESENT, THE INVESTIGATION UNIT IS HEADED BY AN ASSISTANT COMMISSIONER OF INLAND REVENUE. UNDER HIM THE ESTABLISHMENT PROVIDES FOR ONE CHIEF ASSESSOR, SEVEN SENIOR ASSESSORS, 26 ASSESSORS, 15 ASSISTANT ASSESSORS AND A NUMBER OF SUPPORTING STAFF.

A SPOKESMAN FOR THE INLAND REVENUE DEPARTMENT SAID, THIS HAS INCREASED SIGNIFICANTLY WHEN COMPARED WITH OUR STRENGTH IN THE PAST FEW YEARS.+

HE ALSO POINTED OUT THAT MOST OF THE CASES HANDLED BY THE INVESTIGATION UNIT CONCERN PROFITS TAX EVASION, ALTHOUGH SALARIES TAX CASES AND TO A LESSER EXTENT OTHER TAXES ARE ALSO DEALT WITH.

DURING THE FIRST SIX MONTHS OF THE CURRENT FINANCIAL YEAR IT COMPLETED CASES INVOLVING $25.9 MILLION IN BACK TAXES, INCLUDING OVERDUE PENALTY PAYMENTS, COMPARED WITH BACK TAXES AND PENALTY PAYMENTS AMOUNTING TO $15.7 MILLION IN THE CORRESPONDING PERIOD IN 1977/78.

HE ALSO REVEALED THAT AT THE END OF SEPTEMBER THIS YEAR, THERE WERE 287 CASES LISTED FOR INVESTIGATION WITH 251 UNDER ACTIVE EXAMINATION.

THE SPOKESMAN ANTICIPATED THAT THE NUMBER OF CASES TO BE COMPLETED IN THE CURRENT FINANCIAL YEAR WOULD BE ABOUT 120, HE ALSO POINTED OUT THAT EACH INVESTIGATION OFFICER NORMALLY HANDLES ABOUT TEN CASES AT ANY ONE TIME AND ADDED THAT MANY OF THE CASES HANDLED ARE EXTREMELY DIFFICULT AND COMPLEX AND CAN BE EXTREMELY TIME CONSUMING.

ACCORDING TO THE SPOKESMAN, MORE THAN 95 PER CENT OF THE CASES PROBED BY THE INVESTIGATION UNIT TURNED OUT TO HAVE INVOLVED TAX EVASION.

HE ALSO NOTED THAT A NUMBER OF MINOR AND MORE STRAIGHT FORWARD CASES ARE HANDLED BY ASSESSORS IN THE PROFITS TAX AND SALARIES TAX UNITS IN ADDITION TO THE IR NORMAL ASSESSMENT WORK. IN 1977/78, THE NUMBER OF SUCH CASES WAS 316 INVOLVING TAX AND PENALTIES AMOUNTING TO ANOTHER $2.5 MILLION, HE SAID.

+TAX EVASION IS A GAMBLE NOT WORTH TAKING BECAUSE BOTH THE CHANCES AND THE COST OF THEIR BEING CAUGHT ARE GREATER TODAY THAN BEFORE,+ HE ADDED.

UNDER THE INLAND REVENUE ORDINANCE, THE COMMISSIONER OF INLAND REVENUE CAN IMPOSE ON THE EVADER A MAXIMUM FINE OF TREBLE THE AMOUNT OF THE TAX EVADED. ALTERNATIVELY, WHERE CRIMINAL PROCEEDINGS ARE INSTITUTED IN THE COURTS, THE MAXIMUM PENALTY IS THREE YEARS' IMPRISONMENT PLUS A $10,000 FINE AND A FURTHER FINE OF TREBLE THE AMOUNT OF THE TAX EVADED.