Charitable institutions are exempt from tax under the Inland Revenue Ordinance. As at 31 March 2014, the number of charities exempt from tax was 8,044, of which 594 charities were granted exemption during the year. The list of charities exempt from tax is available on IRD Homepage.
Donations to charities exempt from tax are tax deductible. For the year of assessment 2012-13, the amounts of approved charitable donations allowed under profits tax and salaries tax were $3.94 billion and $6.2 billion respectively.
Tax inspectors carry out on-site inspections of businesses and call on individuals to check their compliance with the various ordinances administered by the Department. A total of 93,468 visits were made during the year.
Internal auditors perform an important role within the Department. Their activities are directed at ensuring that work carried out within the Department complies with relevant legislation and departmental procedures. They also examine internal control systems and work methods with a view to identifying areas where improvement can be made for the management's consideration.
Approval for Tax Return Forms and the Manner of Furnishing the Returns
The Board of Inland Revenue is constituted under the Inland Revenue Ordinance. It operates independently of the Inland Revenue Department. One of its functions is to approve returns to be used for property tax, salaries tax, profits tax and personal assessment, and the manner in which the tax returns are furnished.