What tax issues should Hong Kong companies pay attention to?

What tax issues should Hong Kong companies pay attention to?

1. Reporting

Anyone who suspects taxpayers of tax evasion or failure to declare can call the State Administration of Taxation and report through anonymous letters or emails. As long as tax officials can confirm the taxpayer's identity, they will be investigated. In Hong Kong, if anyone successfully reports a tax evasion case that violates the law and discipline, even if it is ultimately confirmed that the case has additional assessable income, the whistleblower will not receive a bonus.

2. Late tax declaration.

Long delays in submission and failure to complete standard tax forms have also raised concerns among tax officials, making them the target of the review. So, when submitting each tax declaration, it is necessary to carefully check and submit it in a timely manner to avoid many unnecessary troubles in the future.

3. Internal referral.

The assessment of Hong Kong tax is carried out by three tax groups: Hong Kong tax, personal income tax, and property tax. However, if the assessor discovers abnormal circumstances during the tax assessment process, it is highly likely that the case will be referred to the superior for on-site audit and investigation team (audit department).

4. Referral from other government departments.

Other government departments, such as Haiguan and Public Security, will also transfer some abnormal situations to the tax department for handling.

5. Self selected objects.

Sometimes, evaluators also select the subjects for examination based on their verification. At the same time, the tax receipts, income statements, balance sheets, or web pages submitted by tax personnel will also provide important information and materials to the tax authorities for filing and review.

6. Special objectives.

In addition, the Hong Kong Inland Revenue Department will also conduct special investigations, such as insurance brokers, car brokers, and so on. Now, the authorities have also begun to suspend inspections of the asset management industry.

7. Media coverage

The reports in newspapers and magazines can also provide some new registration data and information for the tax bureau. For example, if a company introduces the gross profit or business situation of a certain industry to the news media, the tax bureau will compare whether the tax returns submitted by tax personnel in the same industry can reflect whether their statements in the news media are correct.