The company cannot afford not to file a tax return.
Because the executive needs to operate in accordance with the law and obtain relevant registration certificates, including business registration certificates, bank accounts, etc. All of these need to be issued based on the company’s tax status.
If a company does not file tax returns for a long time, it may do the following:
1. Business registration will be revoked: Business registration in Hong Kong needs to be renewed every year, provided that the company does not owe tax. If you don’t file your taxes, you may be denied the renewal of your business registration due to tax arrears.
2. Bank account frozen: If the tax authorities find that a company owes taxes, the bank may be required to freeze the relevant account.
3. Being fined: If the company files a tax return at a later stage, it may be fined for violating the law. The amount of the penalty depends on the size of the company and the amount of tax not filed.
4. The most serious is the closure of the company: If the tax authorities find that a company has not filed taxes for a long time, the serious case may also be the company’s license is eliminated.
In general, the fate of a company’s failure to file a tax return is only a matter of stopping. Companies are advised to take their tax filing obligations seriously and file on time to maintain legal operations.
You may consider hiring someone to handle tax matters or appoint a third-party professional advisor to ensure that your company’s tax position meets regulatory requirements.
To reiterate, the executive cannot choose not to file a tax return on his own.
