The secret to staying away from the tiger (tax) mouth
2024-12-5
In the past two years, the accounting profession has felt that the tax bureau's standards have tightened, tax recovery efforts have intensified, and the tax bureau's attitude has become more aggressive. But these are just based on experience. Recently, numbers have shown that all of the above is true.
1. For the second consecutive year, Hong Kong’s fiscal losses exceeded $100 billion, and its reserve balance was only $733.2 billion. If this situation continues, Hong Kong's finances can only support it for another 7 years... 2. According to the 2023/24 annual report released by the tax bureau at the end of September 2024, the number of completed investigation cases in 23/24 was the same as the previous year, but the total amount of back taxes and fines collected increased by 76% compared with the previous year; review of tax avoidance cases The tax surcharges and fines have even been significantly doubled, which shows how "aggressive" it is.
Faced with the aggressive attitude of the tax bureau, is there any way to stay away from the tiger (tax) mouth and avoid being swallowed up? Yes, the method is as follows:
1. Submit tax returns on time to avoid expiration: Generally, the deadline for submission of profits tax returns is: i) The year-end date is December 31, which can be extended to August 15 of the next year. ii) The year-end date is March 31, which can be extended to November 15 of the same year. Late submission of tax returns will affect the company's records and increase the chances of the tax bureau auditing the company's accounts. 2. Keep adequate and clear accounting records: Keep accounting records carefully. Normal and healthy accounts are easy for the tax bureau to accept; they are also easy to handle when audited. 3. Seek assistance from professional accountants: It is recommended to find an accountant with rich experience to assist with accounting, auditing and tax filing. When responding to questions from the tax bureau, professional accountants should also assist in handling the matter. Don't let non-professionals handle it (such as an "accounting firm", that is, one without an accountant), which will worsen the problem.
Our company has been operating in Hong Kong for many years and is familiar with Hong Kong's business customs and tax laws. We can provide customers with a full range of business services, including: accounting, auditing, tax consulting, tax planning, company establishment, etc. If you have any questions about business regulations or tax issues in Hong Kong, please feel free to contact us.
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