XN000022-1994-08-11 — Page 7

THURSDAY, AUGUST 11, 1994

EFFORTS STEPPED UP TO TACKLE TAX EVASION

*

UP

FIELD AUDIT AND INVESTIGATION ACTIVITIES HAVE BEEN STEPPED

ENSURE THAT TAXPAYERS TO COMBAT TAX EVASION IN HONG KONG AND TO FULFILL THEIR REPORTING OBLIGATIONS IN A PROPER WAY.

THE

COMMISSIONER OF

INLAND REVENUE,

AU-YEUNG,

PING

ANTHONY MR SAID THIS AT A LUNCHEON TALK ORGANISED BY THE LIONS CLUB OF TAI SHAN TODAY (THURSDAY).

BEEN

MR AU-YEUNG SAID AN ADDITIONAL 20 PROFESSIONAL STAFF HAD

OF THE RECRUITED TO THE INVESTIGATION UNIT AND FIELD AUDIT SECTION

(IRD) IN AN EFFORT TO SAFEGUARD DEPARTMENT INLAND REVENUE INTEGRITY OF THE HONG KONG TAXATION SYSTEM IN PRESERVING EQUITY ENSURING ALL TAXPAYERS PAY THEIR FAIR SHARE.

1,400

AUDITS

"IN 1994/95, WE EXPECT TO CONDUCT SOME INVESTIGATIONS IN THE BUSINESS AND RELATED SECTORS WITH BACK TAX

THIS IS PENALTIES ESTIMATED TO BE IN EXCESS OF $1.1 BILLION. INCREASE OF ABOUT

OR 11 PER CENT, OVER LAST YEAR, 140 CASES, AU-YEUNG SAID.

HE ADDED THAT IRD HAD ON-GOING ENFORCEMENT PROGRAMMES ALL CLASSES OF TAXPAYERS AND A CONSIDERABLE PORTION RESOURCES WERE ASSIGNED TO THE BUSINESS-RELATED SECTORS.

AT

THE

AND

AND

AND

AN

++ MR

DIRECTED OF ITS

IN PARTICULAR IN VIEW OF THE INCREASING NUMBER OF TAXPAYERS,

WITHIN THOSE IN THE BUSINESS FIELDS, WHO FAIL TO LODGE THEIR RETURNS

SAID THEY MIGHT THE TIME PRESCRIBED BY THE ASSESSOR, MR AU-YEUNG

OF THE TAX EXPOSE THEMSELVES TO THE RISK OF PENALTIES THREE TIMES UNDERCHARGED IN THE ABSENCE OF A REASONABLE EXCUSE.

THOSE WHO

ARE

SOLE

PROPRIETORS,

ALL TAXPAYERS, ESPECIALLY PARTNERSHIPS AND COMPANIES, ARE ALSO ADVISED TO KEEP PROPER RECORDS OF PAYMENTS AND RECEIPTS WHICH ARE SELF-EVIDENCE AND SUBMIT CORRECT TAX IRD AND TO RETURNS TO SATISFY THE AUDITORS AND INVESTIGATORS FROM ELIMINATE THE RISK OF PENALTIES FOR INCORRECT RETURNS.

TO EVADE A FURTHER

MR AU-YEUNG NOTED THAT TAXPAYERS WITH WILFUL INTENT TAX WOULD BE PROSECUTED AND LIABLE TO A FINE OF $20,000, FINE OF TREBLE THE TAX EVADED AND IMPRISONMENT FOR THREE YEARS.

IN

"IN THE LAST FIVE YEARS, SIX TAXPAYERS HAVE BEEN PROSECUTED THE COURTS FOR TAX EVASION, TWO WERE SENTENCED TO PRISON AND THE OTHER FOUR EACH GIVEN SUSPENDED PRISON SENTENCES," HE SAID.

MR

REMINDED ALSO AU-YEUNG

EMPLOYERS

ΤΟ

OUT CARRY

THEIR CHANGES IN THEIR OBLIGATIONS TO SUBMIT TO THE IRD DETAILS OF ANY EMPLOYEES SO AS TO HELP FACILITATE A MORE EFFECTIVE TAXATION SYSTEM IN HONG KONG.

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