Companies must comply with the following tax regulations:
- Violations and Fines:
– According to the applicable tax laws, the company must file the tax return on time. Failure to file or evade taxes would be against the law.
– Companies may face tax penalties and may be subject to judicial investigations. The amount of the penalty usually depends on the amount of tax evasion and the severity of the circumstances.
- Business Registration Risks:
– Long-term non-filing may result in a review of the company’s business registration by the relevant authorities.
– Serious violations may result in the suspension or revocation of the company’s business registration.
- Funds frozen:
– Serious tax evasion may result in the authorities taking measures to freeze the company’s funds or confiscate the corresponding assets.
- Impact Lending:
– Banks and financial institutions often consider a company’s tax position when reviewing loan applications.
– Not filing taxes or having a bad tax record can negatively impact getting a loan.
- Legitimate Business Risks :
– Companies must pay their taxes on time to ensure legal business status.
– Companies that do not comply with tax requirements may be at risk of being deregistered or cease to operate.
It’s important for companies to file their taxes on time and comply with relevant tax regulations to ensure that they operate legally and avoid risks and costs.
Penalty Policy https://www.ird.gov.hk/chi/pol/ppo.htm
