XN000022-1991-05-02 — Page 8

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THURSDAY, MAY 2, 1991

"WE WILL WANT TO MOVE IN AND OUT QUICKLY. OUR INITIAL TARGET FOR SMALLER CASES WILL BE 14 WORKING DAYS, TO ASSIST

ACHIEVING IN THIS OBJECTIVE, IT WOULD BE HELPFUL IF ALL RELEVANT INFORMATION IS PROVIDED

THE AUDITOR, PREFERABLY AT THE TIME OF THE INITIAL INTERVIEW,

ΤΟ

"UNNECESSARY WRITTEN ENQUIRIES WILL ONLY PROLONG THE DURATION THIS OF THE AUDIT. I HOPE THAT TAX REPRESENTATIVES WILL ALSO IMPRESS POINT ON THEIR CLIENTS, HE SAID.

It

HE ALSO POINTED OUT THAT WHERE THERE WAS ANY SUSPICION OF FRAUD OR

PRODUCTION, MATERIAL

ΤΟ EVASION, ALL DOCUMENTS WOULD BE SUBJECT

REVENUE UPON REQUEST, IN ACCORDANCE WITH SECTION 51(4) OF THE INLAND ORDINANCE.

ON THE QUESTION OF PENALTIES AND PROSECUTIONS, THE COMMISSIONER OR SAID IT WOULD ONLY ARISE WHERE INCORRECT RETURNS HAD BEEN LODGED, FALSE OR MISLEADING STATEMENTS MADE WITHOUT REASONABLE EXCUSE OR THERE WAS WILFUL INTENT TO EVADE TAX.

HE ASSURED THAT IN ANY CASE WHERE REASONABLE EXCUSE EXISTED, THERE COULD NOT BE ANY QUESTION OF PENALTY OR PROSECUTION,

"IT HAS, HOWEVER, BEEN OUR POLICY TO PROSECUTE TAXPAYERS IN THE THIS POLICY WILL COURTS WHERE THERE IS EVIDENCE OF A WILFUL EVASION. CONTINUE TO APPLY WITH EQUAL FORCE TO AUDIT CASES.

BY ADMINISTRATIVELY

"FOR NON-WILFUL INTENT CASES, UNDERSTATEMENTS OF INCOME WILL

ΤΟ BE DEALT CONTINUE

WITH

WAY OF MONETARY PENALTIES UNDER SECTION 82A, HE SAID.

++

TREAT LENIENTLY REGULARISE

THEIR BASIS

IN ADDITION, HE POINTED OUT THAT THE IRD DID CASES WHERE TAXPAYERS CAME FORWARD VOLUNTARILY TO AFFAIRS AND THE PENALTY IMPOSED ON A FULL VOLUNTARY DISCLOSURE WAS SUBSTANTIALLY LESS THAN WOULD OTHERWISE BE THE CASE.

RESULTS OVER- NUMBER OF "I

HE SAID THE GOVERNMENT DID NOT EXPECT DRAMATIC NIGHT AND IT WAS HOPED THAT THEY WOULD BE ACHIEVED OVER A YEARS BY MAINTAINING AN ON-GOING AND EFFECTIVE AUDIT. PROGRAMME. TRUST THAT THE RESULTS WILL, IN TIME, JUSTIFY OUR EFFORTS,

HE ADDED.

HONG KONG GOVERNMENT EXCHANGE FUND

MONEY MARKET OPERATIONS

HKEF

DATE

$ MILLION

CLOSING BALANCE IN THE ACCOUNT ON

1.5.91

480

EFFECT OF FORWARDS TO BE SETTLED ON

2.5.91

-49

EFFECT OF OPERATIONS THIS MORNING

+49

NFUTRAL

EFFECT OF OPERATIONS THIS AFTERNOON

TRADE WEIGHTED INDEX 112.2 *+0.2* 2.5.91

/HONG KONG