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A vehicle importer and distributor was suspected of contravening the Motor Vehicles (First Registration Tax) Ordinance by filing Import Returns for vehicles for use in Hong Kong with under-declared landed values. In operations conducted on July 30 and yesterday (July 31), Hong Kong Customs searched the showroom and office of the company and seized relevant documents for further investigation.
The company, located in Wan Chai, is mainly engaged in selling new vehicles imported from Japan. The company was suspected of filing inaccurate Import Returns for 62 imported vehicles from August 2012 to September 2013 and furnishing false documents to Customs with under-declared landed values of the vehicles, with an intent to be assessed with a lower first registration taxable value.
Investigation revealed that the values of the vehicles shown on the credit loans invoices of the company were much higher than the landed values declared to Customs. It was suspected that the company had filed false Import Returns. The estimated aggregate amount of the under-declared landed values was $5.97 million. Investigation is continuing.
A Customs spokesperson said today (August 1) that according to the Motor Vehicles (First Registration Tax) Ordinance, an importer of a motor vehicle commits an offence when filing a false or inaccurate return as required under section 3B(1) with Customs. Offenders are liable on conviction to a fine of $500,000 and to imprisonment for 12 months.
For enquiries and complaints, please call the Customs hotline at 2545 6182.
Ends/Friday, August 1, 2014
Issued at HKT 19:42
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