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Company fined for making incorrect Employer's Returns

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An employer convicted of making incorrect Employer's Return was ordered by court today (May 15) to pay a total fine of $34,000.

The defendant, a label printing company, had been charged for making, without reasonable excuse, five incorrect Employer's Returns for the five years of assessment from 1995/1996 to 1999/2000, contrary to section 80(2)(a) of the Inland Revenue Ordinance (IRO). The defendant pleaded guilty to all the charges at the Kwun Tong Magistracy.

Under sections 52(2) and (3), an employer is required to file for each year of assessment an Employer's Return including returns which contain the names, places of residence and the full amount of the remuneration in respect of all the persons employed (including directors) who received remuneration in excess of a certain limit during that year.

An IRD spokesman said making incorrect returns, including an Employer's Return, is an offence. The maximum sentence is 3 years' imprisonment and a fine of $50,000 for each charge, plus a further fine of treble the tax amount undercharged.

End/Wednesday, May 15, 2002

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