XN000022-1991-11-14 — Page 14

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THURSDAY, NOVEMBER 14, 1991

THE COMMISSIONER SAID FIELD AUDIT WAS PART OF

EFFORTS TO COMBAT VOLUNTARY COMPLIANCE.

TAX

EVASION AND

PROMOTE

IRD'S ON-GOING

A GREATER DEGREE OF

"PRIMARILY AUDIT INVOLVES THE REDEPLOYMENT

OF PROFESSIONAL

TAX

STAFF FROM THE "OFFICE" TO THE "FIELD" TO VERIFY THE ACCURACY OF

HE EXPLAINED. RETURNS FILED WITH THE DEPARTMENT,

POLICY "BELT-TIGHTENING" HE SAID IN VIEW OF THE GOVERNMENT'S

TRADITIONAL ASSESSING AND THE DEPARTMENT'S INCREASING WORKLOADS, THE

DISCLOSED APPROACH OF CHECKING IN DETAIL THE ACCURACY OF INFORMATION IN TAX RETURNS AND USING THIS TO DETERMINE REVENUE COLLECTIONS WAS LONGER WHOLLY APPROPRIATE.

NO

"WE HAVE HAD TO RE-THINK COMMISSIONER REMARKED

THE

WAY

WE

DO

OUR JOB,

||

THE

HE POINTED OUT THAT MORE THAN HALF OF THE RETURNS IRD RECEIVED, AND VIRTUALLY ALL CORPORATION RETURNS, WERE LODGED

ACCOUNTANTS.

BY PROFESSIONAL

"DETAILED EXAMINATION

OF THESE RETURNS

CAN RESULT IN ONE IN MANY CASES THIS IS

ACCOUNTANT DOUBLE CHECKING THE WORK OF ANOTHER NOT A PRODUCTIVE EXERCISE,

It

HE SAID.

AND MR AU-YEUNG POINTED OUT THAT EXPERIENCES BOTH IN HONG KONG

IT WAS USUALLY OVERSEAS HAD CONFIRMED THAT WHERE PROBLEMS EXISTED BECAUSE OF A FAILURE TO DISCLOSE INFORMATION.

IT MEANT THAT PROBLEMS

REPORTED

AROUND

WAS

WHAT CLASSIFIED WAS AIMED AT

NOT WERE CENTRED IN RETURNS, BUT IN WHAT IS OMITTED, INCORRECTLY

HE NOTED, ADDING THAT FIELD AUDIT OR OVERCLAIMED, ADDRESSING THIS SITUATION BY GOING TO THE HEART OF THE PROBLEM.

MR

AU-YEUNG

SAID THE IRD'S IN AUDIT-ORIENTATED

ΤΟ ACHIEVE THIS NEW DIRECTION, PROFITS TAX UNIT WOULD BECOME INCREASINGLY MORE

THE COMPREHENSIVE WOULD COMPLEMENT AND YEARS THE NEXT FEW INVESTIGATIONS CARRIED OUT BY THE DEPARTMENT'S INVESTIGATIONS UNIT.

"THIS,

OUR

WE EXPECT, WILL RESULT IN A MORE PRODUCTIVE USE OF

ITS INFANT LIMITED STAFF RESOURCES. EVEN NOW, WITH AUDIT STILL IN STAGE, WE ARE BEGINNING TO SEE RETURNS FOR OUR EFFORTS," HE SAID.

THE OF

AUDIT, FIELD WITH CONCURRENTLY

STREAMLINE ITS COMMISSIONER SAID HIS DEPARTMENT WAS TAKING STEPS TO ASSESSING PROCEDURES.

HE

THE INTRODUCTION

EXPLAINED THAT ALL RETURNS WERE NOW SUBJECT TO A PROCESS WHICH DETERMINED WHETHER THEY WERE ALLOCATED TO ONE FOLLOWING THREE CATEGORIES :

*

SELECTION

OF

THE

THE NORMAL LANE FOR RETURNS INDICATING THE NEED FOR IN-DEPTH EXAMINATION AND ASSESSMENT;

THE

FAST LANE FOR

RETURNS

REQUIRING

STRAIGHTFORWARD TECHNICAL ADJUSTMENTS; AND

RELATIVELY

THE THIRD