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Extra Field Audit Team set up to fight tax evasion
The Inland Revenue Department will further step up its fight against tax evasion by setting up an extra Field Audit Team in 1995-96, the Commissioner of Inland Revenue, Mr Anthony Au- Yeung, said today (Wednesday).
In a briefing to the Legco Panel on Financial Affairs, Mr Au-Yeung said this would bring to eight the total number of Field Audit Teams combating tax evasion.
"This extra team is expected to handle an additional 120 cases a year and recover $72 million in back taxes and penalties.
"In total, I expect to process some 1,400 investigation and field audit cases in 1994-95 and to collect $1,100 million in back taxes and penalties," he said.
Mr Au-Yeung said this represented a 17 per cent increase in the amount of actual back taxes and penalties assessed last year.
"However, there is no place for complacency. I expect to achieve a further 18 per cent increase in 1995-96, that is $1,300 million," he said.
Mr Au-Yeung told Legco members that combating tax evasion was still an important item on the Inland Revenue Department's agenda.
"Given our low tax regime, there is no excuse for tax evasion. Taxpayers must pay their fair share of tax," he said.
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On tax avoidance, Mr Au-Yeung said the Administration had carried out consultations on the proposal to introduce measures to tackle tax avoidance using service companies.
He said as a result of the consultations, it has been decided to tackle the "disguised employment" cases through specific legislation.
"The relevant legislation is now being prepared for submission to the Executive Council and Legislative Council in early 1995," he said.
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