Former IRD staff gets 40 months for role in tax bribery scam
2001-8-3
A former Assistant Assessor of the Inland Revenue Department (IRD) was today (Friday) jailed for three years and four months at District Court for his role in a taxation bribery scam.
The court heard that in the past few years, Li Hon-lun, Simon, 40, had secured corrupt assistance from some serving IRD staff in helping a number of companies to avoid IRD action against suspected tax evasion.
The former Assistant Assessor was earlier found guilty before Judge Peter Line on four corruption offences. He was further convicted on three counts of lending money at an effective rate of interest which exceeds 60 percent per annum.
Before he left IRD in July 1999, Li was attached to the Department's Field Audit Group and was involved in investigations concerning companies suspected of understating business profits.
The court heard that between 1997 and 1998, a friend of Lau Kam Wai, proprietor of Wai Fat Plastic Company (Wai Fat), approached the defendant for his assistance in referring a tax agent to represent Wai Fat.
At that time, Wai Fat was under IRD investigation for suspected tax evasion.
The defendant introduced Peter Lau Yuk Chu, a public accountant, to Lau Kam Wai. He also told Lau Kam Wai that he would take care of Wai Fat's case in his official capacity.
Throughout the resolution of Wai Fat's tax dispute with IRD, the defendant had advised Peter Lau on how to present Wai Fat's case to IRD to achieve a settlement most favourable to the company.
Lau Kam Wai subsequently paid Peter Lau $220,600, who gave the defendant $121,330 for his assistance.
The defendant joined a tax consultant company after resigning from IRD.
The court heard that between January 1999 and September 2000, the defendant sought various forms of assistance from his former colleagues at IRD, including referring client companies to the tax consultancy firm and manipulating the IRD filing system to av oid follow-up action by IRD against his client.
In return, the defendant offered them passages to Macau, as well as restaurant meals, nightclub and karaoke entertainment, and prostitution services.
The defendant had also offered $10,000 to Tax Inspector II Angus Wong Kai-ki, and promised to offer monetary rewards to another Tax Inspector II Chung Chi-ming.
The court also heard that the defendant had, on three occasions between March and August last year, lent a total of $1.5 million to his client Yeung Tze-ming, at 144 percent and 156 percent per annum respectively.
Angus Wong Wai-ki, also charged in connection with the scam, was earlier jailed for 14 months for accepting bribes.
The prosecution was today represented by Peter Callaghan on a fiat, assisted by ICAC officer Clement Cheng.
The court heard that in the past few years, Li Hon-lun, Simon, 40, had secured corrupt assistance from some serving IRD staff in helping a number of companies to avoid IRD action against suspected tax evasion.
The former Assistant Assessor was earlier found guilty before Judge Peter Line on four corruption offences. He was further convicted on three counts of lending money at an effective rate of interest which exceeds 60 percent per annum.
Before he left IRD in July 1999, Li was attached to the Department's Field Audit Group and was involved in investigations concerning companies suspected of understating business profits.
The court heard that between 1997 and 1998, a friend of Lau Kam Wai, proprietor of Wai Fat Plastic Company (Wai Fat), approached the defendant for his assistance in referring a tax agent to represent Wai Fat.
At that time, Wai Fat was under IRD investigation for suspected tax evasion.
The defendant introduced Peter Lau Yuk Chu, a public accountant, to Lau Kam Wai. He also told Lau Kam Wai that he would take care of Wai Fat's case in his official capacity.
Throughout the resolution of Wai Fat's tax dispute with IRD, the defendant had advised Peter Lau on how to present Wai Fat's case to IRD to achieve a settlement most favourable to the company.
Lau Kam Wai subsequently paid Peter Lau $220,600, who gave the defendant $121,330 for his assistance.
The defendant joined a tax consultant company after resigning from IRD.
The court heard that between January 1999 and September 2000, the defendant sought various forms of assistance from his former colleagues at IRD, including referring client companies to the tax consultancy firm and manipulating the IRD filing system to av oid follow-up action by IRD against his client.
In return, the defendant offered them passages to Macau, as well as restaurant meals, nightclub and karaoke entertainment, and prostitution services.
The defendant had also offered $10,000 to Tax Inspector II Angus Wong Kai-ki, and promised to offer monetary rewards to another Tax Inspector II Chung Chi-ming.
The court also heard that the defendant had, on three occasions between March and August last year, lent a total of $1.5 million to his client Yeung Tze-ming, at 144 percent and 156 percent per annum respectively.
Angus Wong Wai-ki, also charged in connection with the scam, was earlier jailed for 14 months for accepting bribes.
The prosecution was today represented by Peter Callaghan on a fiat, assisted by ICAC officer Clement Cheng.