謝X麟case, 如果是虧空公款, 為什麼Auditor還可以報稅局? (10點)

I am an auditor, and the following is my experience and knowledge.
1/ Audit is not a process to ensure the company's financial position is health and certain. Audit only ensure that the documents the company provided is true and fair. It means that audit may be possibly providing a true and fair audit report without knowing the full pictures of the company. I do not mean that auditing is not reliable, but if the company itself delicately hide something which is not showed on the financial reports the company gives us, then it is not quite possible to aware the problem. For instance, like this case, the father earns dividends and transfers to his son. Auditor can verify the dividends paid from balance sheet, and that is all. As long as the dividends paid is ensured and approved by board of director and recorded on corporate's mins, it is legal and true and fair in auditing prospective.
2/ If it is simply the son is transfering money to his father, then certainly it has not wrong. However, there are having some codes of conducts to ensure that directors are behaving in the interested of max profit of the company and so for all investors. If the directors are abusing his power to earn extra money, then it violates the code of conduct, and it can be a law suit case issue.
3/ IIf all business activities are performing in Hong Kong, then even if is performing by the Macau company, Hong Kong Tax Revenue Department can still claim for taxes.
Therefore, if all business activities are dealing with oversea customers (out of Hong Kong), then you can setup a company as "offshore" and cap all profits to that offshore company to wave all possible tax paid in Hong Kong.

Formation and management of onshore and offshore companies and trusts to assist with tax planning and asset management including capital fund raising, etc
offshore company ：http://www.sovereigngroup.com/