The Fanling Magistracy has fined a woman $10,000 for making an incorrect statement in her 2005-06 tax return to claim elderly residential care expenses.

Ip Yuet-ying declared in the 2005-06 tax return that she had paid $42,000 to a residential care home for her dependant. Investigations found that the dependant had died on December 17, 2003.

Making an incorrect statement in connection with a claim for any deduction or allowance without a reasonable excuse is an offence. Upon conviction, the maximum penalty is a $10,000 fine and a further fine of triple the amount of tax undercharged. If fraud is involved, the offender is liable to the same fines - and three years' jail.