XN000022-1990-03-29 — Page 14

THURSDAY, MARCH 29, 1990

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MERCHANT SENTENCED TO PRISON FOR TAX EVASION

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A TRADING COMPANY PROPRIETOR WAS TODAY (THURSDAY) FOUND GUILTY OF SIGNING INCORRECT PROFITS TAX RETURNS, WITH WILFUL INTENT TO EVADE TAX.

THE DEFENDANT, MR HO LUI, 62, DENIED SEVEN CHARGES OF TAX EVASION, AND WAS CONVICTED AFTER TRIAL BEFORE DEPUTY JUDGE SURMAN IN THE HONG KONG DISTRICT COURT.

HE WAS ORDERED TO PAY $1,955,000 IN FINE AND WAS SENTENCED TO IMMEDIATE IMPRISONMENT OF 12 MONTHS.

THE COURT WAS TOLD THAT DURING THE YEARS BETWEEN 1980 AND 1986, THE DEFENDANT WITHDREW STOCK OF PLASTIC MATERIALS FROM HIS OWN BUSINESS, WILSUN TRADING COMPANY, AND SOLD THEM TO OTHER PARTIES UNDER A SEPARATE TYPE OF INVOICES.

THESE INVOICES WERE KEPT PERSONALLY BY THE DEFENDANT NOT RECORDED IN THE BOOKS OF THE BUSINESS.

DURING THE SAME

AND WERE

PERIOD OF TIME, THE DEFENDANT SIGNED AND SUBMITTED INCORRECT PROFITS TAX RETURNS WITH SUPPRESSED DAY-TO-DAY SALES AND INFLATED COSTS.

THE UNDERSTATEMENT OF PROFITS IN TOTAL WAS $6,779,922 OR 86 PER CENT OF THE TRUE PROFITS, AND THE TAX UNDERCHARGED WAS $1,080,153.

IN PASSING SENTENCE, THE JUDGE REMARKED THAT THIS WAS A BLATANT FALSIFICATION OF ACCOUNTS ΤΟ DEFRAUD THE INLAND REVENUE DEPARTMENT.

HE SAID THE AMOUNT INVOLVED WAS LARGE AND IT WAS APPROPRIATE TO HAVE AN IMMEDIATE CUSTODIAL SENTENCE.

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