Revenue collected by the Department includes tax, additional tax, surcharge and fines. Schedules 16 and 17 provide details of additional tax, surcharge and fines imposed by the Department in respect of Earnings and Profits Tax during 1999-2000.

Collection of tax

There are various payment methods by which a taxpayer can choose to settle a tax liability, including the "PPS on Internet" and "JETCO Virtual ATM" introduced in October 1999 and March 2000 respectively. Figure 28 shows the payment methods used by taxpayers in 1999-2000. Of the payments made in person, 31,793 transactions totalling $157 million were made via the EPS payment service. A continuous growth is recorded for electronic payments－Payment By Phone Service, Bank ATM and Internet payment services. The total number of such transactions made during 1999-2000 increased by 26% over the previous year.

Figure 28 Payment methods

Refund of tax

Refunds were made during the year to taxpayers for various reasons, such as overpayment of tax or refund arising from a revision of assessment. They were issued as expeditiously as possible. During 1999-2000, tax refunds totalling $8.3 billion were made (Figure 29).

Recovery of tax in default

Taxpayers should pay tax on or before the due date shown in the demand notes issued to them. The vast majority of them settle their tax in a timely manner.

Late payment surcharge of 5% will generally be imposed on tax in default. If tax debts remain outstanding for more than six months after the due date, the Department will impose a further surcharge of 10% on the total unpaid amount.

Any tax in default is immediately recoverable. Recovery notices will be issued to third parties (including employers, bankers and other parties owing money to or holding money on behalf of the defaulting taxpayers) to effect collection. Actions in the District Court may also be commenced. Figure 30 summarizes the recovery actions taken by the Department. Upon entry of judgment, defaulting taxpayers will be liable to legal costs and interest on judgment debt for the period from the date of commencement of proceedings to the date of full settlement in addition to the outstanding tax. Figure 31 shows the legal costs and judgement interest received during 1999-2000.

A person with tax in default may be prevented from leaving Hong Kong. This, however, requires the Commissioner to satisfy a District Court Judge that there are reasonable grounds for believing that the person intends to depart, or has departed, from Hong Kong to reside elsewhere without paying his tax or furnishing adequate security for payment of such tax. The relevant legislation also provides that the person concerned may appeal to the Court of First Instance of the High Court against a District Judge's decision.

Figure 30 Recovery actions

Vision, Mission and Values | Commissioner's Overview | Revenue | Assessing Functions | Collection | Investigation & Field Audit | Taxpayer Services | Information Technology | Human Resources | Legislative Amendments | Environment Report | Miscellaneous | Schedules |

Home Page | Publications and Forms | Annual Report | 中文版年報 (Chinese Version)

(Last updated/reviewed : August 30, 2001))