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PRESS RELEASE
(Source : Government Information Centre)
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Inland Revenue (Amendment) Bill to accept use of
password and telephone in filing tax returns passed
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The Inland Revenue (Amendment) (No. 2) Bill 2001, which seeks to
provide a legal basis for the use of passwords and telephones in
filing tax returns, was passed by the Legislative Council today
(February 26).
The newly enacted Ordinance contains two major amendments. First,
it allows for the use of a password approved by the Commissioner
of Inland Revenue as an alternative to the use of a digital certificate
for authentication and fulfillment of the signature requirement
for tax returns filed under the Government's Electronic Service
Delivery (ESD) Scheme.
At present, taxpayers are allowed to file the major types of tax
returns electronically through the Internet. The types of tax returns
covered by the ESD Scheme include the tax returns for individuals
and property tax returns. In addition, taxpayers may also file their
profits tax returns in Electronic Government Forms (e-Forms) through
the Internet. Under the present mode of operation, taxpayers need
to apply to a recognized certificate authority for a digital certificate
and use the certificate for authentication and signing of the tax
returns by affixing digital signatures. Electronic filing of tax
returns with the use of digital signatures has already been provided
for in the Electronic Transactions Ordinance.
"The amendment relating to the acceptance of passwords is to
provide greater convenience for taxpayers and encourage more taxpayers
to make use of the ESD Scheme to file tax returns. The Inland Revenue
Department will continue to accept the use of digital certificate
for tax returns filed under the ESD Scheme," a Government spokesman
said.
The second amendment included in the new Ordinance is to provide
taxpayers with another convenient mode of electronic means for filing
tax returns, which is by telephone (telefiling).
The existing Ordinance does not provide for lodgement of tax returns
by telephone. To cater for telefiling, additional provisions have
been made in the Bill to extend the meaning of "returns"
to cover particulars furnished by telefiling, to provide that the
Commissioner of Inland Revenue shall specify eligibility criteria
for cases where tax returns may be furnished by telefiling. The
detailed eligibility criteria will be published by notice in the
Gazette.
"This telefiling service will be made available for simple
salaries tax and property tax cases for individuals, which meet
the prescribed criteria for telefiling. The requirement that the
service be available only for simpler cases is due to practical
considerations, such as the need to keep the time taken in furnishing
the return by telephone within a reasonable limit. We estimate that
some 800,000 taxpayers will be able to make use of the new telefiling
service," the spokesman said.
"The lodgement of tax returns through telephone and the use
of passwords under the ESD Scheme will enhance tax return lodgement
services by offering new means of lodgement to the public, and at
the same time, improve IRD's operational efficiency by saving the
time required for transcribing and inputting the information on
a physical tax return into the department's database."
"A taxpayer has first to register with IRD as its 'TeleTax'
user if he wishes to file a tax return electronically with a password.
The taxpayer will then have to register with the system a password
of his own choice. We invite taxpayers to register immediately if
they have not yet done so. The TeleTax registration form can be
obtained through downloading from the IRD web site (http://www.info.gov.hk/ird)
or Fax-a-Form service at 2598 6001," he added.
The amendments will take effect on a date to be published in the
Gazette in March this year.
End/Wednesday, February 26, 2003
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