Tax Investigation and Tax Planning

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:


Garment and cloth industry

Offset printing

Metal parts

Plastic Products


Paper products

Electronic parts

Clocks and Accessories


Audio equipment

Aluminum window


Electronic product

Mineral products

Fabric products

Plastic raw materials

Frozen food



Service industry

Doctors (including Chinese medicine, western medicine and dentist)




Estate agent

Fund management

Travel agency




Language school

Tutorial club


Real estate

Housing construction

Property leasing

Property sale






Catering industry

Chain restaurants

Chinese Restaurant


Tea restaurant



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