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Taxpayer fined for filing incorrect Tax Returns

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A taxpayer was fined a total of $30,400 after pleading guilty to the charges of making incorrect Tax Returns at the Eastern Magistracy today (August 2).

The defendant was charged of filing incorrect Tax Returns for the years of assessment 1998/1999 and 1999/2000 in making incorrect statements in connection with the claim for elderly residential care expenses, contrary to section 80(2)(b) of the Inland Revenue Ordinance (IRO).

He declared that in each of these two years of assessment, he had paid residential care expenses of $74,400 to a residential care home for maintaining a dependant. The Inland Revenue Department(IRD) later found that the monthly charges for the residential care home were fully reimbursed by way of the Comprehensive Social Security Assistance from the Social Welfare Department.

A spokesman for the IRD reminded members of the public that making an incorrect statement in connection with a claim for any deduction or allowance under the IRO is an offence. An offender is liable to a maximum fine of $10,000 plus a further fine of treble the amount of tax undercharged.

End/Friday, August 2, 2002

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