Jackie Chan has started her career as a freelance writer with various major fashion magazines in Hong Kong since January 2018. She provided part-time services to those magazines in return for an authoring fee. However Jackie has never applied for a business registration certificate nor has she kept any records of her own income, and it was so arranged that the authoring fees were credited directly by the payers to the bank account of Chan & Chan.

Chan & Chan is a newspaper stand business ran by Jackies father and mother before they retired last year. For years the profits of Chan & Chan as reported in the tax returns were below the married personal allowance, and as a result Jackies father and mother was not required to pay any tax for the profits made.

In a recent field audit, the Inland Revenue Department officers found that Chan & Chan had actually ceased business for years. They also discovered that Jackie did not report the authoring fees in her own tax returns for the years of assessment from 2017/18 to 2019/20.

Require

(a) Discuss Jackies tax filing obligations in respect of her authoring fees under the Inland Revenue Ordinance. (b) Evaluate Jackies exposure to the penal actions provided under the Inland Revenue Ordinance.