Earnings and Profits Tax - Number of transaction

Payment methods	2001-02 Percentage	2002-03 Percentage
By Post	21%	17%
In Person	33%	33%
By Phone / PPS on Internet	30%	34%
By ATM / Virtual ATM	16%	16%
Total Number of transaction	2,009,094	2,096,691

Earnings and Profits Tax - Amount (Dollars million)

Payment methods	2001-02 Percentage	2002-03 Percentage
By Post	26%	23%
In Person	60%	57%
By Phone / PPS on Internet	8%	14%
By ATM / Virtual ATM	6%	6%
Total Amount	77,749.0	73,028.6

Total Revenue (including other duties) - Number of transaction

Payment methods	2001-02 Percentage	2002-03 Percentage
By Post	19%	15%
In Person	53%	54%
By Phone / PPS on Internet	18%	21%
By ATM / Virtual ATM	10%	10%
Total Number of transaction	3,395,327	3,521,466

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 2002-03, tax refunds totalling $6.8 billion were made (Figure 29).

Figure 29 Tax refunds

Type of Tax	2001-02		2002-03
	Number	Amount (Dollars million)	Number	Amount (Dollars million)
Profits Tax	25,747	3,278.8	26,822	3,492.2
Salaries Tax	298,929	1,344.3	290,963	1,396.4
Property Tax	13,857	108.1	14,481	110.7
Personal Assessment	31,133	286.4	27,014	251.5
Others	11,928	1,040.9	21,217	1,593.4
Total	381,594	6,058.5	380,497	6,844.2

 

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 tax debts remain 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 actions 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 proceedings to the date of full settlement in addition to the outstanding tax. Figure 31 shows the legal costs and judgment interest collected during 2002-03.

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 : February 3, 2003)