There are several important responsibilities which are to be performed by the Commissioner of Inland Revenue. These tasks are necessary in order to ensure that the tax system of Hong Kong can operate optimally.
Overseeing the administration of Tax Ordinances
Among the primary responsibilities of the Commissioner of Inland Revenue is overseeing the administration of some of Hong Kong’s most significant tax ordinances. Among the ordinances which fall under the purview of the Commissioner of Inland Revenue include:
- the Stamp Duty Ordinance,
- the Business Registration Ordinance,
- the Betting Duty Ordinance,
- the Tax Reserve Certificates Ordinance, and
- the Inland Revenue Ordinance.
Each of these ordinances plays a vital role within the tax system of Hong Kong. Their use and enforcement are managed by the Commissioner of Inland Revenue, and this fact thus makes that one of the key responsibilities to be fulfilled.
Notice of Tax Compliance
The Commissioner of Inland Revenue also receives notifications from taxpayers for tax compliance. All taxpayers of Hong Kong are legally obliged to inform the Commissioner of Inland Revenue that they are chargeable for tax purposes at a point sooner than four months after the conclusion of the relevant year of assessment. However, this requirement does not apply to any taxpayer who has already received an individual tax return.
The IRD under the direction of the Commissioner of Inland Revenue may also choose to make an extension to the filing deadline or any other tax deadlines if such an act is deemed suitable. One example of such an extension took place in 2020 when both the individual tax returns deadline and the profit tax returns deadline were delayed by one month.
Barring Errant Taxpayers from Leaving Hong Kong
Another responsibility of the Commissioner of Inland Revenue is that of barring certain errant taxpayers from leaving Hong Kong to shirk their unpaid tax obligations. These taxpayers owe taxes and are planning to leave or have left Hong Kong for another location. The Commissioner applies to the District Court for a direction to prevent errant taxpayers from leaving Hong Kong.
Review of Tax-related Objections
The Commissioner of Inland Revenue analyzes and assesses all tax-related objections filed by Hong Kong taxpayers. Objections are filed by those disputing their tax assessment and must be received by the IRD within one month. In most instances, the objections are managed and processed by other members of the IRD.
However, in situations where the other members of the IRD are unable to reach a consensus regarding the objection in question, the Commissioner of Inland Revenue’s assistance in solving the problem will be required. The Commissioner of Inland Revenue will decide whether to uphold, modify, or annul the assessment after reviewing all related facts.
Should you believe that there is a need for you to file a tax objection of any sort, let us at Paul Hype Page & Co. assist you in this matter. We will explain just how your tax assessment should be changed if necessary. We’ll contact the Commissioner of Inland Revenue or other key figures for further clarification on your behalf if needed.
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