XN000022-1991-11-14 — Page 15

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THURSDAY, NOVEMBER 14, 1991

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THE THIRD CATEGORY FOR VERY STRAIGHTFORWARD CASES WHICH WERE INPUT DIRECTLY TO THE COMPUTER WITHOUT ADDITIONAL SCRUTINY,

"FIELD AUDIT AND IN-DEPTH INVESTIGATIONS WILL TOGETHER SERVE QUALITY CONTROL ROLE IN RELATION TO THIS SELECTION PROCESS,

HE SAID.

A

THE AUDIT AT PRESENT, THERE WERE 24 PROFESSIONAL OFFICERS IN GROUP OF IRD'S PROFITS TAX UNIT. MR AU-YEUNG SAID HE HOPED TO INCREASE DEPARTMENT'S ON- THE NUMBER TO AT LEAST 36 NEXT YEAR AS PART OF THE GOING REDEPLOYMENT OF STAFF INTO AUDIT.

HAD

ON CASE SELECTION CRITERIA, MR AU-YEUNG SAID SO FAR CASES BEEN ONLY CHOSEN FOR AUDIT WHERE THEY HAD EXHIBITED CHARACTERISTICS OF POSSIBLE NON-COMPLIANCE.

CONSIDERATION

BE

OUTLINING HOW THE AUDIT WAS CONDUCTED, THE COMMISSIONER SAID AT

ΤΟ WOULD

GIVEN

THE OF A CONCLUSION

CASE IMPOSITION OF PENALTIES.

THE

"WHERE THERE IS REASONABLE EXCUSE FOR ANY OMISSION OF INCOME OR OVERSTATEMENT OF A DEDUCTION, THERE CAN BE NO QUESTION OF PENALTIES.

"SIMILARLY, FOR A TRIVIAL DISCREPANCY, WE WILL ISSUE A LETTER TO THE TAXPAYER.

WARNING

REASONABLY APPROPRIATE CASES,

"HOWEVER, WHERE SUBSTANTIAL DISCREPANCY CANNOT BE ADMINISTRATIVE PENALTY AND, IN AN EXPLAINED, PROSECUTION WILL BE CONSIDERED," HE ADDED.

MR AU-YEUNG STRESSED THAT HIS DEPARTMENT HOPED TO OPERATE AUDIT PROGRAMME ON THE BASIS OF MUTUAL CO-OPERATION.

THE

WOULD NOT IRD HOWEVER, HE SAID EFFORTS BY DELIBERATELY UNCOOPERATIVE TAXPAYERS.

THE

BE

IN FRUSTRATED

ITS

"IF IT DOES BECOME NECESSARY, WE WILL USE THE FULL THE LAW TO ACHIEVE OUR OBJECTIVES.

EXTENT OF

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"I AM CONFIDENT, HOWEVER, THAT THIS SITUATION WILL ARISE, HE SAID.

NOT OFTEN

LOOKING AHEAD, THE COMMISSIONER SAID HIS DEPARTMENT HAD IN MIND TO SELECT SOME CASES FOR AUDIT ON AN INDUSTRY BASIS.

"BY

LEVEL

USING THIS APPROACH WE HOPE TO SYSTEMATICALLY DEVELOP

VARIOUS

OF SECTORS KNOWLEDGE OF THE

OF COMPLIANCE BY BUSINESS COMMUNITY.

OUR

THE

"THIS, IN TURN, SHOULD ENABLE US TO IDENTIFY

AREAS AND INCREASE OUR COVERAGE.

COMMON PROBLEM

THE IRD EXPECTED TO BE BETTER

AND THE

OF REFINEMENT TARGETS

LEAD TO A HIGHER LEVEL OF

IN THE LONGER TERM, HE SAID AUDIT SELECT SUITABLE PLACED TO

SHOULD ULTIMATELY SELECTION CRITERIA COMPLIANCE.

ON TO HE SAID AS THE IRD'S EXPERTISE DEVELOPED, IT WOULD MOVE

THE LARGER

FIELD AUDIT BUSINESSES

HE INTENDED TO EXTEND AND

DEPARTMENT'S ACTIVITIES, SUCH AS PROGRAMME INTO OTHER AREAS OF THE SALARIES TAX AND PROPERTY TAX.

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