– The Commissioner of Inland Revenue may apply to the District Court for a direction to prevent a taxpayer from evading his or her tax obligations.
– Taxpayers are required to pay the tax on or before the date specified in the notice of assessment, otherwise they will be regarded as in arrears.
– If the tax is not paid after the due date, the IRD will take statutory measures, including imposing a surcharge and collecting the tax from a third party.
– If the first instalment is not paid on time, a surcharge of 5% will be levied on the total amount of tax owed (including the second instalment), and the second instalment will be deemed to be due immediately.
– The Inland Revenue Department (IRD) will impose a surcharge on top of the tax (including %附加費）上再加徵10% that remains outstanding after 6 months from the date of payment.
– The Inland Revenue Department (IRD) may issue tax recovery notices to third parties (e.g. employers, banks, tenants, debtors, customers, etc.) to recover the tax arrears.
– The third party receiving the tax recovery notice must hand over the corresponding money (if applicable) to the Inland Revenue Department within the statutory time limit or face personal liability.
– If the third party is the employer, the employer must comply with the relevant laws and regulations when deducting the employee’s salary, and it must not exceed half of the employee’s salary.
– The Inland Revenue Department (IRD) may bring a civil action in the District Court to recover the tax owed.
– The Inland Revenue Department (IRD) may apply to the District Court for a writ of summons to commence a civil action against the tax defaulter to recover the tax owed. In addition to paying the tax owed, taxpayers also need to pay court costs, fixed costs, and interest.
– If the debt awarded by the court remains outstanding, the Inland Revenue Department may apply for the seizure of the debtor’s property or the execution of a charge order on its immovable property. The Inland Revenue Department may also file an application for bankruptcy or winding-up.
Measures to recover tax arrears https://www.gov.hk/tc/residents/taxes/taxfiling/consequences/recovertax.htm
