Last week, the Inland Revenue announced that a businessman was sued for deliberately underreporting his business income and rental income. After trial, he was convicted of tax evasion and sentenced to 14 months in prison and a fine of HKD 820,000. The 14-month prison sentence in this case is relatively serious, because it is obvious that tax evasion was deliberately underreported; but the fine is only 820,000, which is a relatively small number.
The analysis of the problems in this case is as follows: 1. The businessman is using a sole proprietorship company (i.e. "unlimited company") to conduct business and file tax returns. Because the accounts of unlimited companies do not need to be audited by independent auditors, the tax bureau sees them more strictly and has a higher chance of reviewing them; 2. Short reporting of business income is deliberately concealing tax, the crime is very serious, and it is easy to detect; 3. Failure to report rental income is also a serious crime and easy to detect.
In fact, there are many ways to save tax, but the following tax saving tips must be followed: 1. You must file tax returns in a legal and reasonable way; 2. Recognize that tax payment is the responsibility of the citizens and appropriate tax must be paid; 3. Find a qualified accountant to assist in tax filing; 4. Find an accountant who genuinely wants to help you as your long-term partner.
A detailed explanation of the above tax saving tips has been posted on our facebook/website on 21 July this year, please refer to the relevant content.
Our company is a licensed accounting firm in Hong Kong and has more than 30 years of experience in handling various taxes. Our goal is to grow with our customers and to share result together.
If you have any tax questions, please feel free to contact us.
Homepage
Company Profile
