| Tax Information
: Business
: Record Keeping
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Record Keeping |
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1. |
Section 51C of the Inland
Revenue Ordinance requires every person carrying on a trade,
profession or business in Hong Kong to keep sufficient records
in the English or Chinese language of his income and expenditure
to enable the assessable profits to be readily ascertained.
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2. |
Such records shall
be retained for a period of not less than 7 years.
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3. |
Failure to comply with
the requirements of the Ordinance without reasonable excuse
may be liable to a maximum fine of $100,000. |
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4. |
The records prescribed
in the Ordinance include :- |
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a. |
books of accounts recording
receipts and payments, or income and expenditure;
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b. |
vouchers, bank statements,
invoices, receipts;
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c. |
records of the assets
and liabilities of the person in relation to that trade, profession
or business; |
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d. |
records of all entries
from day to day of all sums of money received and expended in
relation to that trade, profession or business; |
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e. |
where that trade, profession
or business involves dealing in goods -
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i. |
a record of all goods
purchased, and all goods sold in the carrying on of that trade,
profession or business showing the goods, and the sellers and
buyers in sufficient detail to enable the Commissioner to readily
verify the quantities and values of the goods and the identities
of the sellers and buyers, and all invoices relating thereto;
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ii. |
statements of trading stock held
by the person at the end of the accounting period and all records
of stocktakings from which any such statement of trading stock
has been prepared; |
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f. |
where that trade, profession
or business involves the provision of services, records of the
services provided in sufficient detail to enable the Commissioner
to readily verify the entries. |
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5. |
You may download a
copy of the Information Pamphlet "A
GUIDE TO KEEPING BUSINESS RECORDS" for reference. (This
document can be downloaded for viewing and printing by using
the Adobe
Acrobat Reader 5.0 or above and Adobe
Asian Fonts Packs which are available free at the Adobe
Systems Incorporated website.) |
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