Property agent jailed for conspiracy to defraud over stamp duty
2021-3-24
A property agent, charged by the ICAC, was today (March 24) sentenced to four months’ imprisonment at the Tuen Mun Magistrates’ Courts after admitting that he had conspired with a property buyer to deceive the Inland Revenue Department (IRD) into levying a lesser amount of stamp duty by understating the transaction price of a property by $500,000.
The ICAC investigation arose from a corruption complaint. Subsequent enquiries revealed the offence.
Ng Tsz-hin, 28, former property agent of Style House Properties Agency Limited (Style House Properties), pleaded guilty to one count of conspiracy to defraud, contrary to Common Law.
In sentencing, Acting Principal Magistrate Ms Cheung Kit-yee remarked that the case involved a serious offence of a premeditated conspiracy to defraud the IRD of stamp duty. The imposition of a deterrent custodial sentence on Ng was necessary to warn the public not to commit similar offences.
The court heard that at the material time, Ng was a licensed property agent of Style House Properties. On September 3, 2016, he arranged a client, Chan Chung-ho, to view a property in Yuen Long listed for sale at about $2.8 million. Chan was interested in purchasing it and instructed Ng to negotiate the selling price with the vendor.
On the same day, Ng told Chan that the vendor was in need of money. The vendor would sell the property at $2.5 million if Chan agreed to put a purported transaction price of $2 million on the provisional agreement for sale and purchase, and pay the remaining $500,000 to him under the pretext of renovation fee before the completion of the transaction.
Ng further told Chan that he could pay less ad valorem stamp duty to the IRD if he falsely represented to the department that the transaction price of the property was $2 million. Chan eventually acceded to the vendor’s request.
Upon the arrangement of Ng, Chan and the vendor signed a provisional agreement for sale and purchase which purportedly showed that the transaction price of property was $2 million.
Ng further arranged the duo to sign an agreement purporting that $500,000 would be paid to the vendor by Chan as renovation fee. However, ICAC enquiries revealed that no relevant renovation works had been conducted.
The court heard that on September 15, 2016, Chan and the vendor entered into an agreement for sale and purchase in relation to the property at $2 million. The agreement was then submitted to the IRD for stamping and Chan paid an ad valorem stamp duty of $30,000.
Chan should pay an ad valorem stamp duty of $75,000 based on the genuine transaction price of $2.5 million. By understating the transaction price, Chan had paid $45,000 less to the IRD.
On October 26, 2016, Chan issued a cheque of $500,000 to the vendor for the purported renovation fee, the court also heard.
Chan, 76, was also charged by the ICAC in another case for his role in the scam. After pleading guilty to one count of conspiracy to defraud, his case was adjourned to April 16 for sentence.
The IRD and Style House Properties had rendered full assistance to the ICAC during its investigation into the case.
The prosecution was today represented by ICAC officer Peter Chow.
The ICAC investigation arose from a corruption complaint. Subsequent enquiries revealed the offence.
Ng Tsz-hin, 28, former property agent of Style House Properties Agency Limited (Style House Properties), pleaded guilty to one count of conspiracy to defraud, contrary to Common Law.
In sentencing, Acting Principal Magistrate Ms Cheung Kit-yee remarked that the case involved a serious offence of a premeditated conspiracy to defraud the IRD of stamp duty. The imposition of a deterrent custodial sentence on Ng was necessary to warn the public not to commit similar offences.
The court heard that at the material time, Ng was a licensed property agent of Style House Properties. On September 3, 2016, he arranged a client, Chan Chung-ho, to view a property in Yuen Long listed for sale at about $2.8 million. Chan was interested in purchasing it and instructed Ng to negotiate the selling price with the vendor.
On the same day, Ng told Chan that the vendor was in need of money. The vendor would sell the property at $2.5 million if Chan agreed to put a purported transaction price of $2 million on the provisional agreement for sale and purchase, and pay the remaining $500,000 to him under the pretext of renovation fee before the completion of the transaction.
Ng further told Chan that he could pay less ad valorem stamp duty to the IRD if he falsely represented to the department that the transaction price of the property was $2 million. Chan eventually acceded to the vendor’s request.
Upon the arrangement of Ng, Chan and the vendor signed a provisional agreement for sale and purchase which purportedly showed that the transaction price of property was $2 million.
Ng further arranged the duo to sign an agreement purporting that $500,000 would be paid to the vendor by Chan as renovation fee. However, ICAC enquiries revealed that no relevant renovation works had been conducted.
The court heard that on September 15, 2016, Chan and the vendor entered into an agreement for sale and purchase in relation to the property at $2 million. The agreement was then submitted to the IRD for stamping and Chan paid an ad valorem stamp duty of $30,000.
Chan should pay an ad valorem stamp duty of $75,000 based on the genuine transaction price of $2.5 million. By understating the transaction price, Chan had paid $45,000 less to the IRD.
On October 26, 2016, Chan issued a cheque of $500,000 to the vendor for the purported renovation fee, the court also heard.
Chan, 76, was also charged by the ICAC in another case for his role in the scam. After pleading guilty to one count of conspiracy to defraud, his case was adjourned to April 16 for sentence.
The IRD and Style House Properties had rendered full assistance to the ICAC during its investigation into the case.
The prosecution was today represented by ICAC officer Peter Chow.