Earnings and Profits Tax - Number of transaction

Payment methods	2000-01 Percentage	2000-01 Percentage
By Post	29%	21%
In Person	28%	33%
By Phone / PPS on Internet	29%	30%
By ATM / Virtual ATM	14%	16%
Total Number of transaction	1,992,752	2,009,094

Earnings and Profits Tax - Amount (Dollars million)

Payment methods	2000-01 Percentage	2001-02 Percentage
By Post	32%	26%
In Person	57%	60%
By Phone / PPS on Internet	7%	8%
By ATM / Virtual ATM	4%	6%
Total Amount	73,870.3	77,749.0

Total Revenue (including other duties) - Number of transaction

Payment methods	2000-01 Percentage	2001-02 Percentage
By Post	23%	19%
In Person	52%	53%
By Phone / PPS on Internet	17%	18%
By ATM / Virtual ATM	8%	10%
Total Number of transaction	3,520,608	3,395,327

Refund of tax

Refunds are made to taxpayers for various reasons, such as in respect of an overpayment of tax or arising from revision of an assessment. They are issued as expeditiously as possible. During 2001-02, tax refunds totalling $6 billion were made (Figure 29).

Figure 29 Tax refunds

Type of Tax	2000-01		2001-02
	Number	Amount (Dollars million)	Number	Amount (Dollars million)
Profits Tax	28,287	3,514.5	25,747	3,278.8
Salaries Tax	307,974	1,285.4	298,929	1,344.3
Property Tax	16,070	132.8	13,857	108.1
Personal Assessment	34,577	313.6	31,133	286.4
Others	11,337	967.2	11,928	1,040.9
Total	398,245	6,213.5	381,594	6,058.5

 

Recovery of tax in default

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

A late payment surcharge of 5% will generally be imposed where tax is in default. If a tax debt remains outstanding for more than six months after the due date, the Department may impose a further surcharge of 10% on the total unpaid amount.

Any tax in default is immediately recoverable. Recovery notices can 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. Action may also be commenced in the District Court. Figure 30 summarizes the recovery action taken by the Department. Upon entry of judgment, a defaulting taxpayer becomes liable to legal costs and interest on the judgment debt for the period from the date of commencement of the proceedings to the date of full settlement in addition to the outstanding tax. Figure 31 shows the legal costs and judgment interest collected during 2001-02.

Figure 30 Recovery actions

 

 

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.

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(Last updated/reviewed : January 13, 2003)