XN000022-1995-05-22 — Page 17

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Property owners fined for tax evasion

A father and his two sons were fined a total of $555,217 today (Monday) for tax evasion.

Chan Kee-poc, and his two sons, Chan Wing-lun and Louis Chan Wing-yue, were prosecuted for failing to inform the Commissioner of Inland Revenue in writing of their chargeability to property tax for the years of assessment 1988-89 and 1989-90, contrary to Section 80(2)(e) of the Inland Revenue Ordinance.

Chan Kee-poc and Louis Chan had earlier pleaded guilty to all charges while Chan Wing-lun was found guilty in the Western Magistracy.

Chan Kee-poc (67) also known as Tan Chun-gam, is the owner of the properties at the ground floor to fifth floor, 485 Lockhart Road, Hong Kong. He received rental income from these properties in the years of assessment 1988-89 and 1989-90 and the value assessable to property tax amounted to $3,415,104.

Chan Wing-lun (40) is the owner of the properties at the sixth to 10th floor and Louis Chan (32) is the owner of the properties at 11th to 15th floor of the same building.

They also received rental income from the properties in the years of assessment 1988-89 and 1989-90 and the value assessable to property tax amounted to $1,639,264 and $1,222,416, respectively.

The defendants were chargeable to property tax for the years of assessment 1988-89 and 1989-90 in respect of the rental income. They did not inform the Commissioner in writing of their chargeability to tax until the Inland Revenue Department issued tax returns to them in the years 1991 to 1993.

The court was told that as a result, the father had evaded tax of $519,308 and the two sons, Chan Wing-lun and Louis Chan had evaded tax of $249,147 and $185,980, respectively.

Chan Kee-poc was fined a total of $277,654. Chan Wing-lun was fined a total of $154,573 and Louis Chan a total of $122,990.