In recent years, the Inland Revenue Department (IRD) is committed to combat tax evasion and excessive tax avoidance. The Field Audit and Investigation Unit, the fourth section of the IRD, has now grown to a total of 22 teams. In 2019/20, the Field Audit and Investigation Unit completed 1,716 cases, involving a total of HKD2.5 billion in tax and fines.
Serious cases may lead to prosecution. In 2019/20, the IRD successfully prosecuted 3 cases, of which the defendants were found guilty and sentenced to imprisonment and fines. Over the years, the IRD has prosecuted cases involving in the following matters, including:
- The proprietor of the company exaggerated the cost of purchase and therefore understated the profits;
- Deliberately intended to omit the rental income that should have been reported in the tax return;
- Deliberately intended to make false statements in relation to the deduction claims for "home loan interest";
- Making false statements in relation to the claims for Dependent Parent Allowance and Additional Dependent Parent Allowance; and
- Making false statements in relation to the claims for deduction of loss on sale of property.
We recommend that taxpayers should be proactive and take quick and active approach in dealing with tax investigation from the IRD when encountered.
Our company has a team of professionals to assist large and small corporations (including listed companies on the Hong Kong Main Board) to handle tax review/investigation from the IRD. In the past, we have handled cases in different industries, including:
Manufacturing
Garment and cloth industry
Offset printing
Metal parts
Plastic Products
Toy
Paper products
Electronic parts
Clocks and Accessories
Flowers
Audio equipment
Aluminum window
Trading
Electronic product
Mineral products
Fabric products
Plastic raw materials
Frozen food
Service industry
Doctors (including Chinese medicine, western medicine and dentist)
Accountant
Design
Insurance
Estate agent
Fund management
Travel agency
Maintenance
Professional
Education
Language school
Tutorial club
Real estate
Housing construction
Property leasing
Property sale
Retail
Hardware
Supermarket
Catering industry
Chain restaurants
Chinese Restaurant
Restaurant
Tea restaurant
Logistics
Cargo container shipping
Mainland China-Hong Kong Transportation
Our staff are not merely professional accountants, we have over 20 years of experience in negotiating with the IRD and we have strived for the most reasonable solutions for our clients and resulted in great relief of financial and spiritual burdens of our clients.
Moreover, our professional team can also help you conduct a preemptive comprehensive tax review, so that you can take precaution measures beforehand