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Tax Evasion....

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ORIGINAL POST
Posted by lincolnb 19 yrs ago
I have a friend who has been working in HK for the past 4 years and has never paid salary taxes. He works for a person and not a company and his boss has never filed tax return as an employer. He earns close to 30K a month and he's very happy to have a laugh when we all complain about tax filing season! I told him he should file his own tax return but he hopes to be able to make it for the next 3 years without being found by the Inland Revenue... He does have a valid work visa and HKID. Can you actually live and work in HK without declaring your salary and pay taxes?

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COMMENTS
Ed 19 yrs ago
I would suggest your friend contact a solicitor or tax accountant to find out what the options are. Tax evasion is a criminal offence...

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conordec 19 yrs ago
and sounds like his boss could be a dodgy bugger... pretty risky anyway.

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sunmoon 19 yrs ago
Well i suppose he is exempted from taxes coz here in hkg all of them have basic and married person allowance and if he had children additional allowance. single person HKD100k, married person 200K each child HKD30k, i guess this solves the query

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TC 19 yrs ago
There's a few assumptions with that statement, isn't there?

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lincolnb 19 yrs ago
No... No allowance, the guy is single... and should be paying taxes! He won't stay in HK enough time to get a PR. He doesn't pay taxes on his salary in his own country as he's employed as a local. But it's been working for the past 3 years... and he thinks he'll be fine for th naxt 2!

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TC 19 yrs ago
Well on behalf of all those who pay their taxes honestly I hope he gets caught. There's a difference between tax minimisation (through legal avenues) and deliberate tax evasion.

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D-Man 19 yrs ago
Its an interesting situation. The employer is responsible for submitting employee tax forms to the IRD so they can then do the tax assesment. The deductions are only valid after that point. Now if the so called employer is not opperating his business with a valid business registration as a Ltd. company he may not be declaring any business transactions at all. In this case though it would be hard to sponsor and to continue to sponsor an employment visa. The immigration department will request his tax statements to review his employment so it could be a problem at that time. It really depends alot on how the employer keeps his records but if cought they will bith have problems. Another issue is the MPF. I assume if he is not submitting tax forms he is not paying MPF either which could also cause problems. There are alot of risks for them both.

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DaHKGKid 19 yrs ago
It would depend on whether again he is earning income in hong kong and this is what is taxed for all of us. If his employer is employing him and the revenue or sales earned is outside of Hong Kong then he could be okay however it is unlikely he can avoid paying tax if he already has been granted a work permit as this would mean he is on the radar with IRD with expectation to earn money. Some or all of his income would be deemed taxable depending on the share of what could be justified out of Hong Kong.



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ceeh 19 yrs ago
To obtain a work permit his employment contract would have to be submitted to Immigration so they know he is working.


Perhaps the contract states that his salary is tax free meaning that the employer is paying his tax for him. How does he know his employer has not filed a return?


I have some colleagues who are on this type of contract.



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