Couple given jail and suspended sentence with fine respectively for tax evasion

Today, March 5, two individuals were found guilty of tax evasion at the Eastern Magistrates' Courts.

The first defendant was sentenced to three months' imprisonment and a fine of $338,068, which equates to 200% of the tax evaded. The second defendant received a suspended sentence of three years, along with a fine of $405,300, also equivalent to 200% of the tax evaded.

The first defendant admitted to seven counts of evading tax with intent, involving six counts of omitting or understating rental income and one count of providing false information. The total rental income not reported was $1,412,537, leading to $169,034 in unpaid taxes.

The second defendant pleaded guilty to six charges of evading tax with intent, comprising five counts of omitting rental income and one count of false statements. The total rental income omitted was $1,701,075, with tax evasion amounting to $202,650.

Both defendants violated sections 82(1)(a) and 82(1)(e) of the Inland Revenue Ordinance.

The Inland Revenue Department ("IRD") reminded taxpayers that tax evasion is a criminal offense punishable by up to three years' imprisonment and a fine of $50,000, along with an additional fine equal to three times the amount of tax evaded.