Inland Revenue Department - Annual Report 2012-13

Revenue

In 2012-13, the Inland Revenue Department collected $242.1 billion. It represents a slight increase of $3.8 billion or 1.6% over the amount collected in the previous year. The increase mainly came from profits tax. Profits tax collections increased by 6% to $125.6 billion. Salaries tax collections, on the other hand, was reduced by 2% to $50.5 billion because of the tax relief measures introduced in the 2012-13 budget. Stamp duty collections also fell by 3% to $42.9 billion because the stock market had been less than active for most of the time during the year, although the property market was rather exuberant. An analysis of the revenue collected by tax type is provided in Figure 1.

Figure 1Revenue collected by tax type
Type of tax 2009-10
($m)
2010-11
($m)
2011-12
($m)
2012-13
($m)
Profits tax –        
 Corporations 72,224.3 88,191.4 113,798.6 120,727.2
 Unincorporated businesses 4,381.1 4,991.7 4,801.3 4,911.2
Salaries tax 41,245.4 44,254.7 51,761.3 50,467.0
Property tax 1,677.6 1,647.1 1,948.4 2,258.2
Personal assessment 3,655.8 3,921.8 4,512.2 4,078.2
Total earnings & profits tax 123,184.2 143,006.7 176,821.8 182,441.8
Estate duty 185.1 212.8 94.2 137.6
Stamp duty 42,382.6 51,005.1 44,355.9 42,879.7
Betting duty 12,767.1 14,759.1 15,760.6 16,564.8
Business registration fees 578.7 35.7 1,292.9 122.9
Total revenue collected 179,097.7 209,019.4 238,325.4 242,146.8
% change over previous year -6.5% 16.7% 14.0% 1.6%

The revenue collected by the Department during 2012-13 accounted for 69.1% of the Government General Revenue (Figure 2). Profits tax contributed the largest part of the total revenue collected, followed by salaries tax. Together they made up 72.7% of the total revenue collected (Figure 3).

Figure 2Government General Revenue



Figure 3Composition of the revenue collections

In 2012-13, the cost of collection of revenue rose from 0.51% to 0.54% (Figure 4).

Figure 4Cost of collection