The District Court has sentenced the Management Association's former deputy director Lau Tai-fai to six months in jail - suspended for two years - for salaries tax evasion and fined him $361,800, or 180% of the tax he evaded.

Lau, who was also a former part-time lecturer with the association, made use of a sole proprietary business his father owned to receive his part-time remunerations. His part-time lecturer's remunerations, totalling $1.37 million, were omitted from his tax returns for 1996 to 2002.

As his father was an aged retiree, the part-time lecturer's income reported by the sole proprietary business did not exceed the personal allowance due to his father. As a result, his father was not required to pay any tax for the part-time income. The total amount of tax evaded was $201,255.

Tax evasion is a criminal offence. The Inland Revenue Department adopts a zero-tolerance policy against tax evasion. Prompt investigation and prosecution will be carried out as appropriate.