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Taxpayer jailed for false claims of dependent parent allowances

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A taxpayer was today (June 3) jailed for two months after earlier being convicted at Tuen Mun Magistrates' Courts of evading salaries tax. The defendant, aged 52, indicated that he would lodge an appeal against sentence and was granted bail.

The defendant pleaded guilty to eight charges of wilfully and intentionally evading tax by making false statements in connection with claims for Dependent Parent Allowances (DPA) and Additional Dependent Parent Allowances (ADPA) under the Inland Revenue Ordinance (IRO) for eight years of assessment 1996-97 to 2003-04, contrary to section 82(1)(c) of the ordinance.

The court heard that the defendant made false statements in his tax returns for the years of assessment 1996-97 to 2001-02. He falsely declared that either or both of his parents were residing with him during the year and that he had contributed money towards their maintenance. He also submitted two Forms of Claim for DPA falsely stating that during the years of assessment 2002-03 and 2003-04, his mother or both parents were living with him and that he had contributed money towards their maintenance.

An investigation by the Inland Revenue Department revealed that the defendant's father and mother of the defendant had passed away on November 17, 1987, and April 14, 1985, respectively.

The defendant had made false claims of DPA and ADPA of $456,500 for the eight years of assessment 1996-97 to 2003-04. The total tax undercharged was $79,800.

A spokesman for the department reminded taxpayers to file correct tax returns. Making an incorrect statement in the return in connection with a claim for any deduction or allowance was an offence under the ordinance. The maximum penalty for each charge is three years' imprisonment and a fine of $50,000, plus a further fine equivalent to three times the amount of tax evaded.

Ends/Tuesday, June 3, 2008

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