XN000022-1989-09-07 — Page 4

3

THURSDAY, SEPTEMBER 7, 1989

THE

LODGEMENT GRANTED

TURNING TO THE SUBJECT OF TIMELY LODGEMENT OF RETURNS AND SANCTIONS

FOR FAILING APPLIED

TO COMPLY WITH THE REQUIREMENTS. THE COMMISSIONER SAID TAX REPRESENTATIVES WERE ANNUAL BLOCK EXTENSIONS FOR THE LODGEMENT OF THEIR CLIENTS' RETURNS.

"EXPERIENCE SHOWS THAT IN GENERAL BOTH REPRESENTATIVES THEIR CLIENTS ADHERE TO THE APPROVED EXTENSION ARRANGEMENTS.

AND

ARE

"EACH YEAR THERE ARE OF COURSE. A NUMBER OF TAXPAYERS WHO

LODGE THEIR UNABLE. THROUGH CIRCUMSTANCES BEYOND THEIR CONTROL, TO RETURNS BY THE EXTENDED DUE DATE AND MUTUALLY ACCEPTABLE LODGEMENT ARRANGEMENTS ARE USUALLY AGREED IN THESE CIRCUMSTANCES, SAID.

ALTERNATIVE || HE

"THERE ARE, REGRETFULLY HOWEVER, A SMALL GROUP OF TAXPAYERS WHO FAIL TO COMPLY WITH LODGEMENT REQUIREMENTS. THE REASONS FOR FAILING TO LODGE RETURNS BY THE DUE DATE ARE VARIED, SOME GENUINE BUT THE MAJORITY. I FEAR. NOT." HE ADDED.

ΤΟ DEAL WITH THESE DELINQUENT TAXPAYERS, THE

HAS A NUMBER OF REMEDIES AVAILABLE TO IT, ESTIMATED ASSESSMENTS; OFFERS

OF

GREAT

INLAND REVENUE INCLUDING THE COMPOUND OFFENCES:

SECTION

DEPARTMENT

ΤΟ ISSUE PROSECUTION IN THE COURTS: AND IMPOSITION OF PENALTIES UNDER

82A.

HAS

"IN THE GENERALITY OF CASES, THE ESTIMATED ASSESSMENT PROCEDURE

IN

WAYWARD PROVED

WEAPON

COERCING TO BE AN EFFECTIVE ITSELF

MR AU-YEUNG TAXPAYERS ΤΟ COMPLY WITH THEIR LODGEMENT OBLIGATIONS, SAID.

THE "THIS IS BECAUSE ESTIMATED PROFITS ARE GENERALLY BASED ON

PROFIT GROWTH TAXPAYERS ESTABLISHED PROFIT TRENDS PLUS A MARGIN FOR FOR THAT YEAR, HE EXPLAINED.

+

ASSESSMENTS ACTUAL

"IN MOST

ESTIMATED CASES IT HAS BEEN FOUND THAT

THE COVER AGAINST WHICH OBJECTIONS ARE RECEIVED ADEQUATELY ASSESSABLE PROFITS.

A

DULY COMPLETED "WHERE THE DEFAULT IS A FIRST FAILURE AND THE RETURN IS RECEIVED SOON AFTERWARDS. THE DEPARTMENT GENERALLY TAKES LENIENT VIEW OF THE MATTER, THE COMMISSIONER SAID.

"

DEFAULTER

BE

"FOR THIS CATEGORY OF CASES, A LETTER REMINDING THE OF HIS OBLIGATIONS IS ISSUED. HOWEVER, SUBSEQUENT FAILURES MAY NOT TREATED SO LIGHTLY," HE POINTED OUT.

THE

ESTIMATED ASSESSMENT

PROCEDURE WOULD NOT

ΤΟ APPLY

NEW NOR TO PROFIT

TAXPAYERS AS THERE IS NO BASIS TO MAKE A REALISTIC ESTIMATE, TAXPAYERS WITH LARGE ACCUMULATED LOSSES BECAUSE ANY REASONABLE ESTIMATION WOULD STILL LEAVE THE TAXPAYER IN AN OVERALL LOSS POSITION.

"IN

ISSUE THE RETURN

A

ΤΟ PRACTICE IT IS NORMAL THESE CIRCUMSTANCES COMPOUND OFFER REQUIRING THE TAXPAYER TO AGREE TO LODGE WITHIN A SPECIFIED PERIOD OF TIME AND PAY A MONETARY PENALTY.

"IN THE EVENT THAT THE TAXPAYER FAILS TO ACCEPT THE OFFER THE COURTS THROUGH COMPLY WITH HIS ACCEPTANCE, INEVITABLE." MR AU-YEUNG SAID.

PROSECUTION

AND

IS

/THE COMMISSIONER