Tax Return Problem. Need answers. Thanks!



ORIGINAL POST
Posted by Henrychan1st 7 yrs ago
So I have been really stupid for the past two years. Every time it came to doing my income tax return, I was too busy and plan forgot. However, the inland revenue still managed to send me a tax bill, so I thought all was well.

However, I have now been slapped with a court summons for failure to provide a tax return.

My question is, what will happen? Am I about to be slapped with a massive fine or will it be just the difference for what I haven't paid? Is this going to be really bad or just a slap on the wrist?

Please advise as I am a bit worried.

Thanks You.

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COMMENTS
stephenlo 7 yrs ago
You are liable for a fine up to 3 times of tax not paid. So, depends very much on amount of tax you have to pay.

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hkwatcher 7 yrs ago
are you talking about HK IRD or another country?

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Henrychan1st 7 yrs ago
HK IRD.

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Henrychan1st 7 yrs ago
@STEPHEN LO

The thing is, I have paid taxes. I paid the bill they sent every year. So is the fine going to be what was not accurately worked out i.e. the difference, or a full tax bill?

BTW, thanks for the replies. It is much appreciated.

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stephenlo 7 yrs ago
From what you have said, you have not filed tax return and IRD sent you and estimated assessment. However, IRD has the right to compel you to file tax return / provide information / conduct field audit etc.

You will be liable to fine up to 3 times of the difference short paid only.

Let say you paid $10,000 tax last year but what you actually should pay was $15,000, you will have to pay the difference $5,000 plus a maximum fine of $15,000 (3 x $5,000). Usually the fine will be 1 to 2 times if you are cooperative and send the information as requested within the time specified.

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