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Taxpayer fined for making incorrect tax return

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A taxpayer pleaded guilty in the Western Magistracy today (May 9) of making incorrect statements in his Tax Return-Individuals without reasonable excuse, contrary to section 80(2)(b) of the Inland Revenue Ordinance.

The defendant was charged with making incorrect claims for Dependent Parent Allowance in his tax returns for the years of assessment 1997/98 and 1998/99.

Despite the death of his father in June 1996, the defendant still declared to have maintained and lived with his father for the full year on his tax returns and claimed for the Dependent Parent Allowance for the aforesaid years of assessment in respect of his deceased father.

The defendant was fined a total of $19,000.

A spokesman for the Inland Revenue Department said under the Inland Revenue Ordinance, heavy penalties may be incurred for making an incorrect return. The offender is liable to a maximum fine of $50,000 plus a further fine of three times the amount of tax undercharged and imprisonment for three years.

This year Tax Return-Individuals 1999/2000 was issued to taxpayers on May 2, 2000. "All taxpayers are required to submit a true and correct tax return within one month, or within three months for sole-proprietorship owners, from date of issue of the return," he added.

End/Tuesday, May 9, 2000

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