Guide to Tax Return - Individuals

Part 13    Declaration

Making an incorrect return or committing other offences under the Inland Revenue Ordinance may result in heavy penalties.

OFFENCES AND PENALTIES

The Inland Revenue Ordinance provides heavy penalties for any person who:

- fails to comply with the requirements of a notice to make a return without reasonable excuse;

- makes an incorrect return without reasonable excuse;

- makes a false return with fraudulent intent to evade tax;

- fails to give notice of a change or cessation of employment without reasonable excuse;

- fails to notify a change of address without reasonable excuse;

- fails to keep sufficient records of business income and expenditure without reasonable excuse (maximum fine $100,000);

- fails to give notice of the cessation of a trade, profession or business without reasonable excuse;

- fails to give notice of cessation of ownership of a property without reasonable excuse; or

- fails to keep sufficient records of rental income of property without reasonable excuse.

EVASION OF TAX IS A CRIMINAL OFFENCE. THE MAXIMUM PENALTY is a fine of $50,000 PLUS a further fine of 3 times the undercharged amount and imprisonment for 3 years.

For failure to file tax return within the stipulated time or incorrect return cases, the Commissioner or a Deputy Commissioner may, instead of prosecuting, make an assessment of additional tax under section 82A of the Inland Revenue Ordinance. The maximum amount of additional tax provided by law is 3 times the undercharged amount. You may visit www.ird.gov.hk/eng/pol/ppo.htm or use the 'Fax-A-Form' Service to view / get the Penalty Policy Statement of this Department.

Example to show how the Part 13 of paper return - 'Declaration' is to be completed