Business owners would have a common dream – to become wealthy and be recognized in their communities.

There was a recent case that, a Mr. A, aged around 40, had become a member of the HKJC about 3years ago. He owned a supreme racing horse which had brought him a big fortune and fame in the top class community. However, very few people knew of his career and how he managed to gain a decent wealth at such an age.

Digging a little bit of Mr. A’s history by a local gossip magazine, it was made public that he owned many fish stalls in central markets of various districts in our city. It was further reported by the magazine that Mr. A was a harsh boss, paying minimum wages to his employees who were mostly low-educated people migrated to here. His employees were poorly paid and ill-treated. Everyone in his employment hated him.

Mr. A had hired a non-practising accounting firm to prepare annual financial statements for Profits Tax filing. His business was primarily conducted in cash and net takings were mostly paid into his firm’s bank accounts. His prominent name was likely being spotted by the Inland Revenue Department after his racing horse had become the champion of the year. His fortune in the racing course had not brought him real luck but an intensive examination of his business and personal affairs. The final result of this case was not surprising. Mr. A was ordered to pay additional taxes and compound penalties totaling over 30 millions!