TNAG-1642-FCO40-2289-Public-finance-in-Hong-Kong-Supplementary-Appropriation-(198-1987 — Page 321

FCO40 Hong Kong Department Records 聯邦事務部香港部檔案 All

256

Date:

28.11.86

Time:

Reporter:

8.30

PMS

-

12.30

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potential.

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If the case has possible prosecution potential it will

be processed as such, it will be worked through to see that it can

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be presented to the Legal Department to see whether that can be instituted against the tax evader. If not, then it will be finalised

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in such a manner so that it can be referred to me as Commissioner to impose a monetary penalty. I would say that I cannot manufacture prosecutions, and the Department's practice is that whenever a case has prosecution potential, we will work as such. We are not given a lenient attitude towards evasion. If it has that potential it will be worked as such. If it hasn't, it will work in the other direction.

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MR POON:

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So what you are saying is actually that if there is evidence that could substantiate prosecution, you certainly 14 would take steps, appropriate steps to negotiate with the --

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CIR:

Yes.

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MR POON:

proper departments. It is a quick

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carrot and the stick situation that you are more inclined to use your own discretion to see which is the best way to extract the

additional tax.

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CIR:

Yes.

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MR POON:

Or to take the prosecution.

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CIR:

Yes. I can cite a typical example which

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came before me recently, is that we gone through the records, we

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29 are completely satisfied that this case cannot be prosecuted except

in one count, in one count that is to fail to keep proper records.

Now if you

but the other side of the coin is that I will forfeit

32 a penalty of over HK$5 million. Now if that is the course of action I take against that tax evader, the maximum penalty he will get will be HK$5,000 for failing to keep proper records. Now what kind of publicity that can achieve? But don't misunderstand me, I am not saying that that is the representative of this type of case. My

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LI

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