On March 28, our company issued a post talk about a 65-year-old taxpayer who concealed and underreported his rental income, thinking that he could hide it by using other people’s bank accounts to collect rent; he also falsely reported the tax deduction for residence interest; when the tax bureau making inquiries, he even provided false statements and was prosecuted by the tax bureau. The court made a ruling last week and found him guilty of 12 counts of tax evasion. He was sentenced to seven months in prison and a fine of 20,000 dollars for each charge, a total of 240,000 dollars.
The penalty in this case is actually very light, because the maximum penalty for each charge is three years in prison and a fine of 50,000 dollars. That is, the maximum penalty in this case is 36 years in prison and 600,000 dollars fine.
In fact, the underreported tax involved in this case was only 550,000 dollars. The light sentence would have been seven months in prison, and the severe sentence would have been 36 years in prison. It was definitely not worth the gain.
I have said it many times, tax saving in a legal way.
Once again, there are many ways to save taxes, but the following tax saving tips must be followed: 1. Doing business is long-term, and you must file taxes in a legal and reasonable way; 2. Recognize that paying taxes is the responsibility of citizens and they must pay appropriate taxes; 3. Find a qualified accountant to assist in filing taxes or handling questions from the tax bureau.
Our company is a licensed accounting firm in Hong Kong with more than 30 years of experience in handling various tax matters. Our aim is to "grow together with our customers and share results".
If you have any tax issues, please feel free to contact our company.
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