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The Mandatory Provident Fund Schemes Authority (MPFA) today (August 14) successfully prosecuted a security company at Kwun Tong Magistracy for evading its MPF contributions by setting aside and labelling part of two employees' salary as housing allowance.
This was another case following a successful conviction in January in which the defendant pleaded not guilty to the charges, and was convicted after trial for evading MPF contributions by labelling part of an employee's income as housing allowance.
After hearing the case, the Magistrate found the defendant, CNT Security Company Limited, guilty of not making full MPF contributions for two employees by setting aside a substantial part of the employees' incomes as housing allowance. The defendant was fined a total of $3,000.
CNT Security Company Limited was prosecuted for failing to make MPF contributions of some $1,900 over six months' contribution periods from July to August, 2002, and March to June, 2004, in respect of part of two employees¡¦ relevant income, which were labelled as housing allowance.
Upon receiving the complaint, the MPFA immediately conducted an investigation. Having gathered sufficient evidence and consulted the Department of Justice, it was decided to lay summonses against the defendant for six counts of contravening the Mandatory Provident Fund Schemes Ordinance. The defendant was fined $500 for each of the six summonses, totalling $3,000.
"The MPFA welcomes the magistrate's ruling. The authority will step up its enforcement actions against employers who abuse housing allowances in evading MPF responsibilities," an authority spokesman said.
"The MPFA reminds employers not to abuse housing allowance exemption to evade their MPF responsibilities."
The MPFA urged employees who encountered the similar situation to report to the MPFA's hotline at 2918 0102 as early as possible and to act as prosecution witness to protect their MPF benefits and rights.
The authority today obtained two orders for payment of outstanding MPF contributions at around $650,000 against two employers in the District Court. MPFA today also pursued seven claims in the Small Claims Tribunal for some $110,000 on behalf of eight employees, who were owed MPF contributions by their employers.
The District Court today issued two judgements against two employers - Dickson Construction (Maintenance) Limited and Dickson Design Services Limited. The defendants were ordered to pay the MPFA the sums of $432,719.03 and $222,398.32 respectively, being mandatory contributions in arrears and surcharges payable to 92 and 49 employees respectively.
At today's Tribunal hearing, the defendants, Super Bond Engineering & Enterprise Limited and Solomon Communications Limited, did not dispute the amount claimed. The Adjudicator ordered them to pay the MPFA the sums of$9,950.41 and $8,276.31, being mandatory contributions in arrears and surcharges payable.
The other five defendants, Kwong Yip Dyeing Factory Limited, Grand Smart Consultants Limited, Pattern Enterprises (International) Limited, Dayfoong Dyeing and Weaving Factory Limited and Summit Vantage Engineering Limited, did not appear at today's hearing. In their absence, the Adjudicator ordered them to pay the MPFA the sums of $40,599.34, $24,164.08, $14,700, $10,456.05 and $7,330.55, being mandatory contributions in arrears and surcharges payable.
The amounts awarded will be reimbursed to the employees' MPF accounts as soon as they are received by the MPFA. The court further awarded payments of $220, $310, $160, $250, $400, $80 and $210 as the costs in respect of the claims.
Super Bond Engineering & Enterprise Limited pleaded guilty at Kwun Tong Magistracy earlier to 24 counts of failing to make MPF contributions on time and was fined $21,600.
Ends/Monday, August 14, 2006
Issued at HKT 18:40
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