A taxpayer has been sentenced to three months' jail, suspended for two years and fined $30,000 at the Kwun Tong Magistrates' Courts for evading salaries and property taxes. The fine represented 67% of the tax evaded.

Wong Yuen-ping, 45, pleaded guilty to five charges of evading salaries tax and one charge of evading property tax wilfully with intent.

The court heard Wong, jointly with her husband, acquired a property at Noble Place, Tuen Mun in 1998. Wong claimed deductions for home loan interest in respect of the property in her tax returns for the years of assessment 1998-2003 by making false statements that the property was used as her place of residence.

Wong was granted deductions in respect of the interest incurred on the property's mortgage. In the property-tax return issued to the property's joint owners for the year of assessment 2001-02, Wong declared the property had been left vacant throughout the year.

Property had been rented out

An Inland Revenue Department investigation revealed Wong and her family resided at quarters provided to her husband by his employer at all times and rented the Tuen Mun property to different tenants.

In 1998-2003, Wong had falsely claimed deductions for home-loan interest amounting to $315,315. The total tax undercharged was $38,554.

The investigation also showed Wong let out the property and received rental income from 1998 to 2002. She omitted the rental income of $53,000 from the property-tax return for the year of assessment 2001-02 and the resultant tax evaded was $6,157.