In Hong Kong, the Inland Revenue Department (IRD) is the government body which is responsible for the administration the administration of taxes and duties. The functions of the IRD include the imposition of taxes on the taxpayers of Hong Kong as well as the enforcement of Hong Kong’s tax laws, whether major or minor.
Structure of the IRD
The IRD is led by the Commissioner of Inland Revenue. The IRD also has two deputy commissioners who serve under the direction of the commissioner. One deputy commissioner manages all technical aspects of the IRD. The second oversees the operational elements of the IRD. The deputy commissioner who manages operational matters is also in charge of a group of people known as the departmental administration.
Other groups of people who serve under the IRD are those in Unit 1, Unit 2, Unit 3, Unit 4, the Commissioner’s Unit, and the Headquarters Unit. Everyone in Unit 1, Unit 2, and the Commissioner’s Unit is held accountable to the technical deputy commissioner. Similarly, everyone who is in Unit 3, Unit 4, or the Headquarters Unit is to report to the operational deputy commissioner.
Functions of the Inland Revenue Department
The primary goal of the IRD is to provide a high standard of tax administration for all taxpayers of Hong Kong. Taxation plays a key role in the economic condition of any location in the world. Therefore, the functions which performed by the IRD play an important role in promoting the economic development and growth in Hong Kong.
In order for such to be achieved, the IRD must thus perform its core functions to the best of its ability.
These functions include the following:
- Promotion of tax compliance in Hong Kong by way of proper tax law enforcement, public education, and programs targeting the masses
- Collection of tax revenue in a cost-effective and efficient manner
- Training of IRD staff members in order to equip them with the requisite skills, abilities, and knowledge for the carrying out of their duties
- Serving of the taxpayers of Hong Kong to help them overcome any difficulties or problems they may have related to Hong Kong tax
As an aside, should you happen to have any issues related to any tax-related matter in Hong Kong, we at Paul Hype Page & Co are always willing to be of assistance. Our tax experts will take you through whatever tax problem you might be facing and help you overcome it in accordance with the tax laws of Hong Kong. We will also contact the IRD or other tax authorities on your behalf should there be a need for us to do so.
The Taxpayer’s Charter
The upholding of the Taxpayer’s Charter is another role played by the IRD. The Taxpayer’s Charter is an important document which specifies the rights and obligations of every taxpayer of Hong Kong. It may be used by anyone in Hong Kong who has any dealings with the IRD.
It is not only individuals who may make use of the provisions stated in the Taxpayer’s Charter. The Taxpayer’s Charter also applies to all partnerships, companies, and other organizations based in Hong Kong. Among the key rights of a taxpayer which are listed include the following:
- Prevention of a taxpayer from having to pay an amount greater than what is legally required
- Privacy and confidentiality with regard to all tax matters
- Permission to be served in either Chinese or English
- Courteous treatment at the hands of the IRD
Some of the main obligations of a Hong Kong taxpayer, meanwhile, include:
- Punctuality in payment of taxes
- Maintenance of sufficient tax records
- Honesty in all dealings with the IRD
- Accuracy and completeness of information provided to the IRD