Field Audit and Investigation Services
The Hong Kong Inland Revenue Department (“IRD”) is increasingly aggressive in scrutinizing and reviewing the tax position of taxpayers. The Field Audit and Investigation Unit with the IRD is primarily responsible for conducting the audit and investigation cases (“Tax Audit cases”) on businesses and individuals where tax evasion and inaccurate tax reporting is suspected.
The work of IRD officers entails site visits to business premises and examination of accounting records of taxpayers in order to ascertain whether correct returns of profits/income have been made. In the absence of professional tax advice, the taxpayers have to deal with the IRD officers directly throughout the tax audit process [See diagram below].
*Note: The scale of penalty to be imposed on a taxpayer is based on a function of the nature of omission or understatement of income or profit, the degree of his co-operation of disclosure and the length of the offence period. Pursuant to the Inland Revenue Ordinance, the maximum penalty will be imposed up to treble amount of the tax undercharged plus imprisonment for 3 years.
Our specialists have over 20 years of relevant professional experiences in handling tax audit cases, including ex-IRD officer, and well-versed with the practice and procedures of the IRD. Our specialists can assist you in achieving the best possible settlement basis while minimizing the disruption to your day-to-day operation. We have been successfully assisting our clients in resolving prolonged tax disputes and tax audit cases with the IRD in a past decade.
If you find yourself in such a situation unfortunately, we can assist you and your business to manage and mitigate the situation appropriately with your best interests in mind and to develop an appropriate strategy and settlement basis for resolving the tax audit with the IRD. All information will be handled with care and in strictly confidential manner.
