Experts Advice - Car park property tax evasion

 

Car parking space owners, watch out !

 

In June 2007, a property owner was successfully brought to court and convicted for tax evasion by Inland Revenue Department.

 

In this case, the defendant rented out a residential flat together with 3 car parking spaces for 6 years but did not report rental income to Inland

 

Revenue. He received monthly rental through his bank account !

 

What’s more ? He lied in a written statement to Inland Revenue for use of car parking spaces.

 

Total tax evasion ? HK$244,851.

 

Penalty ? fined HK$480,000 and immediate jail term for 12 months !

 

How do they know about it ?

 

Commissioner for Inland Revenue at the time, Mrs Alice Lau, claimed they will go through your bank accounts, trace the fund flow, examine

 

documents, interview witnesses and taking statements from them.

 

Scary stuff.

For reference only. It is not investment advice.