General Inspection
Tax inspectors carry out on-site inspections of businesses and call on individuals to check their compliance with the various ordinances administered by the Department. A total of 93,468 visits were made during the year.
Internal Audit
Internal auditors perform an important role within the Department. Their activities are directed at ensuring that work carried out within the Department complies with relevant legislation and departmental procedures. They also examine internal control systems and work methods with a view to identifying areas where improvement can be made for the management’s consideration.
Approval for Tax Return Forms and the Manner of Furnishing the Returns
The Board of Inland Revenue is constituted under the Inland Revenue Ordinance. It operates independently of the Inland Revenue Department. One of its functions is to approve returns to be used for property tax, salaries tax, profits tax and personal assessment, and the manner in which the tax returns are furnished.
Schedules
1 Tax Assessed and Collections for the year ended 31 March 2014
2 Demand Notes Issued, Tax Assessed and Collections (2010-11 to 2013-14)
3 Profits Tax Contributions from Various Business Sectors (Corporations) for years of assessment 2010-11 to 2012-13
4 Profits Tax Contributions from Various Business Sectors (Unincorporated Businesses) for years of assessment 2010-11 to 2012-13
5 Analysis of Salaries Tax Assessments for the year of assessment 2012-13 6 Analysis of Allowances for the year of assessment 2012-13
7 Property Statistics (as at 31 March 2014)
8 Business Registration Statistics (2010-11 to 2013-14)
9 Stamp Duty Collections and Stamp Office Activities (2010-11 to 2013-14) 10 Estate Duty Assessed and Collections for the year ended 31 March 2014 11 Betting Duty Collections (2011-12 to 2013-14)
12 Tax Reserve Certificates Statistics (2010-11 to 2013-14) 13 Offences Committed and Court Fines Imposed
14 Surcharges Added, Offences Compounded, Additional Tax Imposed and Costs Awarded by the Board of Review
Annual Report 2013-1448
SCHEDULE 1 EARNINGS AND PROFITS TAX - TAX ASSESSED AND COLLECTIONS FOR THE YEAR ENDED 31 MARCH 2014
Profits Tax
Property Salaries Profits Tax (Unincorporated Personal
Tax Tax (Corporations) Businesses) Assessment Total
($) ($) ($) ($) ($) ($)
Tax assessed during the year -2011-12 and earlier years 163,277,649 583,859,713 2,655,544,867 301,256,926 433,075,285 4,137,014,440
2012-13 Final Tax only 399,646,283 389,007,546 (1,553,765,512 ) 373,859,157 3,975,125,737 3,583,873,211
2013-14 Provisional Payments and Final Tax 2,251,110,570 56,730,565,456 117,029,650,392 4,103,538,918 1,488,271 180,116,353,607
Total Tax Assessed 2,814,034,502 57,703,432,715 118,131,429,747 4,778,655,001 4,409,689,293 187,837,241,258
Add:
Collectables -Tax outstanding as at 31 March 2013 brought forward 486,520,050 9,601,382,096 39,481,909,123 2,757,599,914 673,772,054 53,001,183,237 Surcharge, Compound Penalty and Additional Tax imposed 27,562,052 233,340,445 628,139,980 139,800,802 9,781,039 1,038,624,318
and Costs awarded by the Board of Review
Interest on Tax Held Over 7,882 1,847,218 (28,672,184 ) 1,440,625 1,546,212 (23,830,247)
Write-off re-opened 1,862,260 28,285,714 2,136,666 10,605,178 2,284,194 45,174,012
Total of Tax Assessed and Collectables (a) 3,329,986,746 67,568,288,188 158,214,943,332 7,688,101,520 5,097,072,792 241,898,392,578
Collections during the year -Net Tax collected 2,557,922,354 55,401,243,157 115,452,469,855 4,634,587,020 4,410,850,429 182,457,072,815 (After allowing for refunds of tax) (90,491,466 ) (2,630,390,614) (6,897,647,400) (256,335,133) (303,793,123) (10,178,657,736) Surcharge, Compound Penalty, Additional Tax and Costs awarded by 25,906,950 217,525,682 608,633,953 147,665,764 8,343,028 1,008,075,377
the Board of Review
Interest on Tax Held Over 15,511 1,502,849 36,361,265 2,095,474 817,614 40,792,713
Total Net Collections (b) 2,583,844,815 55,620,271,688 116,097,465,073 4,784,348,258 4,420,011,071 183,505,940,905
Balance of Tax, Surcharge, etc. payable (a)-(b) 746,141,931 11,948,016,500 42,117,478,259 2,903,753,262 677,061,721 58,392,451,673
Less: Not collected by virtue of set-off 199,144,261 1,989,958,511 - 496,012,750 - 2,685,115,522
Written-off as irrecoverable 1,819,007 60,892,914 401,160,781 24,055,222 3,642,597 491,570,521
Tax, Surcharge, etc. outstanding as at 31 March 2014 carried forward 545,178,663 9,897,165,075 41,716,317,478 2,383,685,290 673,419,124 55,215,765,630 Less: Under objection or appeal 10,523,139 831,683,112 27,217,428,309 927,793,506 266,339,280 29,253,767,346
Listed for write-off but awaiting approval 1,757,348 307,501 1,315,817 3,471,561 200,844 7,053,071
Assessed but not yet due 342,442,180 6,953,454,614 10,895,474,439 600,107,932 214,629,444 19,006,108,609 Net Tax, Surcharge, etc. in arrears as at 31 March 2014 190,455,996 2,111,719,848 3,602,098,913 852,312,291 192,249,556 6,948,836,604
Annual Report 2013-14
SCHEDULE 2 EARNINGS AND PROFITS TAX - DEMAND NOTES ISSUED, TAX ASSESSED AND COLLECTIONS
2010-11 2011-12 2012-13 2013-14
No. of No. of No. of No. of
Demand Notes Tax Assessed Demand Notes Tax Assessed Demand Notes Tax Assessed Demand Notes Tax Assessed
($'000) ($'000) ($'000) ($'000)
Profits Tax -Corporations 102,024 83,317,239 111,610 110,937,289 107,179 115,231,917 111,443 118,131,430
Unincorporated Businesses 30,145 5,742,745 31,060 4,920,954 33,419 5,228,490 35,817 4,778,655
Salaries Tax 1,275,831 46,376,008 1,386,338 54,456,246 1,386,174 52,554,919 1,510,435 57,703,433
Property Tax 112,898 1,804,941 121,722 2,102,117 127,302 2,504,360 136,286 2,814,034
Personal Assessment 177,449 3,913,994 195,353 4,599,041 208,638 4,044,071 209,687 4,409,689
Total 1,698,347 141,154,927 1,846,083 177,015,647 1,862,712 179,563,757 2,003,668 187,837,241
2010-11 2011-12 2012-13 2013-14
Collections Collections Collections Collections
($'000) ($'000) ($'000) ($'000)
Profits Tax -Corporations 88,191,392 113,798,601 120,727,141 116,097,465
Unincorporated Businesses 4,991,658 4,801,270 4,911,223 4,784,348
Salaries Tax 44,254,738 51,761,323 50,466,999 55,620,272
Property Tax 1,647,134 1,948,429 2,258,216 2,583,845
Personal Assessment 3,921,753 4,512,218 4,078,199 4,420,011
Total 143,006,675 176,821,841 182,441,778 183,505,941
Annual Report 2013-1450
SCHEDULE 3 CORPORATIONS - PROFITS TAX CONTRIBUTIONS FROM VARIOUS BUSINESS SECTORS
Final Tax Assessed for Year of Assessment
Business Sectors 2010-11 2011-12 2012-13
($'000) (%) ($'000) (%) ($'000) (%)
Distribution
-Retail 3,671,276 3.9 5,293,608 5.0 5,025,194 4.5
Wholesale, Import and Export 21,101,601 22.2 24,029,280 22.6 23,563,186 21.5
Foreign Corporations carrying on Import and Export 79,205 0.1 66,808 0.1 65,710 0.1
Public Utilities 5,095,460 5.4 5,508,957 5.2 6,343,571 5.8
Property, Investment and Finance 21,859,733 23.0 26,506,315 26,607,918 24.3
(other than Banking)
Banking 15,939,870 16.8 17,539,464 16.5 19,973,652 18.2
Manufacturing
-Clothing and Textiles 1,044,572 1.1 1,194,642 1.1 952,153 0.9
Food and Beverage Products 494,301 0.5 398,606 0.4 456,038 0.4
Steel and Other Metals 379,625 0.4 290,791 0.3 283,853 0.3
Printing and Publishing 625,497 0.7 571,137 0.5 546,678 0.5
Others 4,207,012 4.4 3,744,932 3.5 4,013,031 3.7
Shipping (including Shipping Agents, Shipbuilding, Docking, Travel 1,474,033 1.6 1,478,412 1.4 1,112,576 1.0
Agents, Air Forwarding Agents and Airline Booking Agents)
Hotels, Restaurants and Amusement Centres 1,992,234 2.1 2,551,916 2.4 2,927,990 2.7
Stevedoring, Wharfing and Godowns 1,206,327 1.3 1,158,536 1.1 1,278,768 1.2
Clubs and Associations 1,008,710 1.1 1,073,692 1.0 1,028,560 0.9
Insurance Companies and Insurance Agents 1,287,766 1.4 1,284,019 1.2 1,588,485 1.5
Non-resident Corporations Trading through Agents 1,532,104 1.6 1,514,428 1.4 1,416,041 1.3
(including Consignment Tax)
Building Contractors and Engineering Works 1,329,216 1.4 1,557,377 1.5 1,804,785 1.7
Aircraft Owners and Operators 127,340 0.1 134,628 0.1 197,297 0.2
Taxis, Hire Cars, Public Light Buses and Motor Boats 214,641 0.2 179,478 0.2 192,077 0.2
Miscellaneous 10,104,802 10.7 10,094,086 9.5 10,003,115 9.1
Total 94,775,325 100.0 106,171,112 100.0 109,380,678 100.0
25.0
Annual Report 2013-14
SCHEDULE 4 UNINCORPORATED BUSINESSES - PROFITS TAX CONTRIBUTIONS FROM VARIOUS BUSINESS SECTORS
Final Tax Assessed for Year of Assessment
Business Sectors 2010-11 2011-12 2012-13
($'000) (%) ($'000) (%) ($'000) (%)
Property Developers, Property Dealers, Property Agents and 95,208 3.3 89,318 2.9 118,366 3.7
Subletting Businesses
Finance and Securities including Brokers, Dealers and Insurance 188,780 6.6 213,621 6.8 230,093 7.2
Agents
Builders, Decorators and Civil Engineering Works 28,155 1.0 23,064 0.7 37,980 1.2
Distribution
-70,725 2.5 70,264 2.2 70,395 2.2
Wholesale 42,800 1.5 45,423 1.4 47,250 1.5
Retail 178,839 6.2 192,916 6.2 206,678 6.4
Manufacturing
-Agricultural Trades and Food & Beverage Products Manufacturers 5,806 0.2 7,525 0.2 16,206 0.5
Cloth and Clothing 10,185 0.4 6,555 0.2 4,532 0.1
Chemical Products and Mechanical Engineering 33,286 1.2 25,698 0.8 28,363 0.9
Printing and Publishing 9,339 0.3 9,142 0.3 7,824 0.2
Others 16,839 0.6 20,562 0.7 17,344 0.5
Hotels, Restaurants and Amusement Centres 48,331 1.6 63,929 2.0 74,506 2.3
Transport (including Wharfing and Godowns) 35,964 1.2 28,875 0.9 34,079 1.1
Professions
-Accountants 415,380 14.5 421,078 13.4 386,833 12.0
Architects, Engineers, Surveyors, etc. 4,372 0.2 3,633 0.1 3,753 0.1
Doctors and Dentists 656,840 22.9 876,419 27.9 881,574 27.5
Solicitors and Barristers 870,105 30.3 885,622 28.2 859,123 26.7
Other Professions 152,804 5.3 156,824 5.0 184,872 5.7
Miscellaneous 4,551 0.2 3,719 0.1 5,928 0.2
Non-resident Businesses * 72 0.0 4 0.0 4 0.0
Total 2,868,381 100.0 3,144,191 100.0 3,215,703 100.0
Import and Export
* Consignment Tax under Section 20A(3) of the Ordinance
Annual Report 2013-1452
SCHEDULE 5 ANALYSIS OF SALARIES TAX ASSESSMENTS FOR THE YEAR OF ASSESSMENT 2012-13 BY INCOME GROUP
($) (%) ($'000) ($'000) ($'000) ($'000) ($'000) ($'000) ($'000) ($'000) ($'000) (%) ($)
120,001 - 130,000 42 ,903 2.69 0 5,394,661 5,148,360 815 3,028 777 7 48,019 193,655 949 0.00 22
130,001 - 140,000 54,389 3.41 0 7,339,537 6,527,098 7,587 12,271 5,219 36 140,278 647,048 3,211 0.01 59
140,001 - 150,000 54,639 3.42 0 7,919,652 6,562,443 18,913 22,174 13,764 131 163,722 1,138,505 5,669 0.01 104
150,001 - 180,000 147,755 9.26 0 24,375,371 18,070,329 115,910 90,604 72,840 1,570 544,104 5,480,014 34,020 0.06 230 180,001 - 210,000 126,079 7.90 0 24,564,763 16,356,427 179,844 115,822 104,678 2,897 622,122 7,182,973 69,748 0.1 553 210,001 - 240,000 118,755 7.45 0 26,674,895 16,685,789 186,317 151,723 152,492 5,097 740,074 8,753,403 114,257 0.22 962 240,001 - 270,000 110,944 6.96 7,620 28,263,705 17,947,912 173,567 158,881 154,642 7,496 752,793 9,068,414 145,635 0.28 1,313 270,001 - 300,000 106,211 6.66 7,696 30,229,418 18,192,487 173,233 197,731 185,677 14,115 793,937 10,672,238 241,697 0.46 2,276 300,001 - 400,000 266,589 16.71 34,126 92,450,904 54,376,956 482,101 673,493 634,403 52,504 2,189,533 34,041,914 1,454,487 2.76 5,456 400,001 - 500,000 173,448 10.87 27,000 77,248,087 41,054,880 335,609 658,910 654,811 55,593 1,625,737 32,862,547 2,309,969 4.39 13,318 500,001 - 600,000 108,969 6.83 14,151 59,372,720 27,175,085 243,658 559,928 554,661 48,520 1,029,826 29,761,042 2,793,351 5.31 25,634 600,001 - 700,000 69,806 4.38 7,213 45,199,577 17,404,084 145,949 489,052 384,650 41,702 692,968 26,041,172 2,913,809 5.54 41,742 700,001 - 800,000 42,920 2.69 3,977 32,032,572 10,803,077 88,077 329,553 276,337 26,517 399,044 20,109,967 2,477,704 4.71 57,728 800,001 - 900,000 32,143 2.02 2,395 27,145,378 8,072,684 59,042 284,935 213,181 20,168 307,423 18,187,945 2,385,398 4.53 74,212 900,001 - 1,000,000 21,957 1.38 1,544 20,763,519 5,504,810 45,048 194,595 157,174 14,092 203,844 14,643,956 2,006,599 3.81 91,388 1,000,001 - 1,500,000 60,412 3.79 3,508 72,215,012 15,118,949 104,462 674,843 463,781 33,180 503,359 55,316,438 8,074,901 15.35 133,664 1,500,001 - 2,000,000 22,454 1.41 1,170 38,591,480 5,173,195 35,442 324,012 209,834 10,139 182,819 32,656,039 4,963,102 9.43 221,034 2,000,001 - 3,000,000 17,902 1.12 727 43,072,050 3,367,012 19,246 304,777 191,730 6,063 140,806 39,042,416 5,963,421 11.33 333,115 3,000,001 - 5,000,000 9,699 0.61 139 36,440,407 814,706 7,281 268,685 103,341 2,811 77,332 35,166,251 5,274,347 10.02 543,803 5,000,001 - 7,500,000 3,546 0.22 9 21,353,029 10,695 1,864 138,993 36,736 407 27,955 21,136,379 3,136,283 5.96 884,457
7,500,001 - 10,000,000 1,423 0.09 3 12,231,711 0 540 96,064 14,555 164 10,710 12,109,678 1,802,241 3.42 1,266,508
2,120 0.13 2 43,666,754 0 858 451,544 19,175 81 16,383 43,178,713 6,455,626 12.27 3,045,107
Total 1,595,063 100.00 111,280 776,545,202 294,366,978 2,425,363 6,201,618 4,604,458 343,290 11,212,788 457,390,707 52,626,424 100.00 32,993 3
10,000,001 & over Annual Income
Percentage of Total Final Tax Final Tax
Total Net Chargeable
Income Contribution
Recognized to Retirement Scheme Elderly
Residential Care Expenses Home Loan
Interest
Concessionary Deductions
Total Donations to Charities Self
Education Expenses Total
Allowances (See analysis Per Schedule 6) Total Income
(After Deductions other than Self Education
Expenses and Concessionary Deductions) No. of
Elections for Joint Assessment Percentage
Taxpayersof No. of
Taxpayers
Average Tax per Taxpayer
Annual Report 2013-14
SCHEDULE 6 ANALYSIS OF ALLOWANCES FOR THE YEAR OF ASSESSMENT 2012-13 BY INCOME GROUP
($) ($'000) ($'000) ($'000) ($'000) ($'000) ($'000) ($'000) ($'000) ($'000) ($'000) ($'000) ($'000)
15,118,949
294,366,978 ($'000)
120,001 - 130,000 5,148,360 0 0 0 0 0 0 0 0 0 0 0 0 0 5,148,360
130,001 - 140,000 6,526,680 0 0 0 0 418 0 0 0 0 0 0 0 0 6,527,098
140,001 - 150,000 6,556,680
153,269,028
0 25 0 0 5,738 0 0 0 0 0 0 0 0 6,562,443
17,730,600 0 63 45,375 0 220,039 67,564 6,650 38 0 0 0 0 0 18,070,329
180,001 - 210,000 15,129,480 0 275,014 71,181 0 608,741 247,228 20,919 3,534 0 330 0 0 0 16,356,427
14,250,600 0 421,672 77,352 0 1,216,855 656,070 38,646 11,989 0 7,458 528 0 4,620 16,685,790
11,355,960 3,914,640 592,175 78,969 120 1,246,248 661,447 43,073 12,578 0 29,700 1,716 1,056 10,230 17,947,912 10,677,960 4,134,720 835,851 73,194 600 1,491,899 818,216 47,196 15,105 0 76,626 3,762 3,036 14,322 18,192,487 23,448,960 17,083,440 5,406,810 184,470 297,994 4,870,555 2,468,423 157,282 46,455 15,708 297,726 17,490 24,552 57,090 54,37 ,955 13,890,708 13,846,080 6,150,365 114,147 317,238 4,213,649 1,892,419 131,480 35,606 19,998 314,886 16,896 51,282 60,126 41,05 ,880 8,845,680 8,461,200 4,507,286 73,722 211,880 3,191,202 1,360,210 95,551 23,940 12,870 273,702 16,236 47,882 53,724 27,175,085 5,823,600 5,106,240 2,960,934 46,266 127,368 2,125,644 851,865 61,161 14,896 8,514 191,730 12,012 32,538 41,316 17,404,084 3,494,640 3,311,520 1,917,323 25,245 77,232 1,278,947 485,640 34,998 8,968 6,534 111,144 6,534 20,394 23,958 10,803,077 2,600,160 2,514,000 1,487,088 17,391 59,040 912,000 328,168 24,814 5,282 4,158 81,642 5,016 15,708 18,216 8,072,683 1,740,480 1,788,720 1,019,871 10,956 40,440 602,243 209,057 16,606 3,705 2,508 46,332 3,894 10,098 9,900 5,504,810 4,609,200 5,280,480 2,955,953 27,192 95,964 1,465,679 456,133 38,988 8,322 4,752 117,480 8,052 25,344 25,410
1,092,840 2,255,520 1,179,135 6,138 30,540 424,175 121,239 11,172 1,748 924 30,558 2,706 9,504 6,996 5,173,195 321,600 1,823,280 908,357 3,234 27,540 194,902 57,342 4,180 1,102 594 14,850 462 5,610 3,960 3,367,013
24,600 443,280 284,445 627 7,800 37,753 9,481 722 190 132 2,970 132 1,716 858 814,706
240 4,320 4,410 0 0 1,045 76 38 38 0 132 0 396 0 10,695
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
69,967,440 30,906,777 855,459 1,293,756 24,107,732 10,690,578 733,476 193,496 76,692 1,597,266 95,436 249,116 330,726 150,001 - 180,000
210,001 - 240,000
270,001 - 300,000 300,001 - 400,000 400,001 - 500,000 500,001 - 600,000 600,001 - 700,000 700,001 - 800,000 800,001 - 900,000 900,001 - 1,000,000 1,000,001 - 1,500,000 1,500,001 - 2,000,000 2,000,001 - 3,000,000 3,000,001 - 5,000,000 5,000,001 - 7,500,000 7,500,001 - 10,000,000 10,000,001 & over Total
($'000)
240,001 - 270,000 Annual Income
Disabled Brother/
Sister Allowance Disabled
Child Allowance Disabled
Parent Allowance
Disabled Grandparent
Allowance Disabled
Spouse Allowance Additional
Dependent Grandparent
Allowance Dependent
Grandparent Allowance Additional
Dependent Parent Allowance Dependent
Parent Allowance Single
Parent Allowance Dependent
Brother/
Sister Allowance Child
Allowance Married
Person's Allowance Basic
Allowance Total
Allowances
Annual Report 2013-1454
SCHEDULE 7 PROPERTY STATISTICS (as at 31 March 2014)
Classification of Properties No. of Properties %
(i) Solely owned by individuals [excluding those under item (iv)] (Rental income, if any, is reported in 866,393 36.03 Composite Tax Returns)
(ii) Jointly owned, owned by tenants-in-common, and solely owned other than by individuals [excluding
those under item (iv)] -Letting 128,627
Other usage or vacant 569,346 697,973 29.03
(iii) Owned by corporations and exempted from property tax under the Inland Revenue Ordinance 440,874 18.34 (iv) With alienation restriction under Home Ownership Scheme or Private Sector Participation Scheme 300,562 12.50
(v) New ownership - awaiting classification 98,484 4.10
Total 2,404,286 100.00
Classification by Number of Owners No. of Properties %
Properties owned by : 1 owner 1,518,135 63.14
2 owners 822,822 34.22
3 owners 41,391 1.72
4 owners 10,578 0.44
5 owners 4,565 0.19
6 - 10 owners 5,479 0.23
11 - 20 owners 1,166 0.05
Over 20 owners 150 0.01
Total 2,404,286 100.00
Annual Report 2013-14
SCHEDULE 8 BUSINESS REGISTRATION STATISTICS
Fiscal Year 2010-11 2011-12 2012-13 2013-14
New registrations 203,499 178,074 200,112 228,483
Re-opened registrations 10,782 12,460 11,279 12,290
Cancelled registrations 99,219 116,698 121,836 111,705
Current registrations as at 31 March 1,060,196 1,134,032 1,223,587 1,352,655
Certificates issued (including certificates with annual fees waived) 1,125,127 1,158,838 1,264,736 1,403,124
Businesses exempted from payment of fees 11,839 13,697 11,907 9,779
Extracts of information issued 339,453 333,547 344,611 352,409
($'000) ($'000) ($'000) ($'000)
Fees and penalties collected (excluding levy)* 35,752 1,292,919 122,869 73,494
Court fines 6,009 7,268 6,358 6,426
Fees and penalties in arrears as at 31 March (excluding levy) 14,379 92,781 48,110 25,707
* The annual fees in respect of business and branch certificates with commencement dates falling within the following periods were waived:
(1) 1 August 2009 to 31 July 2011 (2) 1 April 2012 to 31 March 2013 (3) 1 April 2013 to 31 March 2014
Annual Report 2013-1456
SCHEDULE 9 STAMP DUTY COLLECTIONS AND STAMP OFFICE ACTIVITIES
Fiscal Year 2010-11 2011-12 2012-13 2013-14
Duties on - ($m) ($m) ($m) ($m)
• Property Assignments and Chargeable Agreements 24,504.5 20,447.5 22,355.0 18,160.7
• Contract notes
- Collected by Stamp Office 2,543.4 2,135.8 1,734.7 2,148.0
- Collected through The Stock Exchange of Hong Kong Limited 23,333.9 25,877.3 21,170.4 23,306.2 18,147.3 19,882.0 20,556.3 22,704.3
• Leases 484.8 473.1 493.2 545.3
• Transfer deeds 4.2 2.3 2.2 2.8
• Other documents 57.6 66.4 66.1 77.6
Penalties 76.5 60.3 81.1 23.6
Additional duties for delays in payment 0.2 0.1 0.1 0.4
Total duty collections 51,005.1 44,355.9 42,879.7 41,514.7
Average number of callers to Stamp Office per day 1,890 1,860 1,642 1,530
Number of documents stamped during the year 1,955,228 1,707,450 1,647,554 1,718,029
Annual Report 2013-14
SCHEDULE 10 ESTATE DUTY - DUTY ASSESSED AND COLLECTIONS FOR THE YEAR ENDED 31 MARCH 2014
Assessments issued in 2013-14
Assessments Original Assessments
issued before Estates valued Estates valued Estates valued Estates valued Estates valued Additional
1 April 2013 under $2m $2m to $4m $4m to $10m $10m to $20m over $20m Assessments Total
($'000) ($'000) ($'000) ($'000) ($'000) ($'000) ($'000) ($'000)
Outstanding charges brought forward 261,175 - - - - - - 261,175
from 2012-13
Less: Amount discharged 190 - - - - - - 190
Net outstanding charges brought forward 260,985 - - - - - - 260,985
from 2012-13
Net duty assessed 0 0 0 823 3,218 140,925 1,252 146,218
Penalties charged 0 0 0 99 310 2,773 28 3,210
Interest charged 3,579 0 0 1,197 1,359 27,636 875 34,646
Total amount payable 264,564 0 0 2,119 4,887 171,334 2,155 445,059
Less: Amount paid on account before 0 0 0 73 2,326 131,907 1,180 135,486
1 April 2013
Net duty, penalties and interest payable 264,564 0 0 2,046 2,561 39,427 975 309,573
in 2013-14
Less: Outstanding charges carried 167,009 0 0 20 2,411 18,131 439 188,010
forward to 2014-15
Net duty, penalties and interest paid in 97,555 0 0 2,026 150 21,296 536 121,563
2013-14
Add: Duty and interest paid on 0 12 0 4,356 216 262,264 0 266,848
account in respect of assessments to be issued in subsequent years
Total collections in 2013-14 97,555 12 0 6,382 366 283,560 536 388,411
Annual Report 2013-1458
SCHEDULE 11 BETTING DUTY COLLECTIONS
Fiscal Year 2011-12 2012-13 2013-14
($'000) ($'000) ($'000) ($'000) ($'000) ($'000)
Horse Racing Day Meetings
Net Stake Receipts 8,380,488 8,928,955 9,570,428
Betting Duty 6,069,866 6,487,470 6,969,907
Night Meetings
Net Stake Receipts 5,428,088 5,475,583 6,435,139
Betting Duty 3,932,561 3,977,962 4,688,113
Horse Race Betting Duty (For rates, please refer to Figure 22 of 10,002,427 10,465,432 *11,658,020
Chapter 3) Lotteries (Mark Six)
Proceeds from Lotteries 8,054,314 7,811,778 7,724,688
Lotteries Duty (Rate: 25%) 2,013,579 1,952,944 1,931,172
Football Betting
Net Stake Receipts 7,489,178 8,292,759 8,954,514
Football Betting Duty (Rate: 50%) 3,744,589 4,146,380 *4,477,257
Total duty collected 15,760,595 16,564,756 18,066,449
* Provisional payment
Note: The betting duty on local bets on non-local horse races is charged at the standard rate of 72.5% on the net stake receipts with effect from 1 September 2013 while the betting duty on local bets on local horse races is still charged on the net stakes receipts at a set of progressive rates from 72.5% to 75%.
Annual Report 2013-14
SCHEDULE 12 TAX RESERVE CERTIFICATES
Sales Redemption
Fiscal Year Number of
Certificates Amount Number of
Certificates Amount Interest
($'000) ($'000) ($'000)
2010-11
Save for Tax Payment
• Paper certificate 7 20 21 119 6
• Save-As-You-Earn Scheme 46,602 75,917 48,079 77,604 570
• Electronic Tax Reserve Certificates Scheme 39,081 265,017 37,695 252,047 335
Security for Tax in Dispute 1,507 3,070,899 1,594 2,739,933 34,024
Total 87,197 3,411,853 87,389 3,069,703 34,935
($'000) ($'000) ($'000)
2011-12
Save for Tax Payment
• Paper certificate 7 32 45 80 9
• Save-As-You-Earn Scheme 45,471 75,153 43,008 73,660 293
• Electronic Tax Reserve Certificates Scheme 40,775 271,391 40,131 269,442 182
Security for Tax in Dispute 1,606 2,464,592 1,587 4,074,055 5,631
Total 87,859 2,811,168 84,771 4,417,237 6,115
($'000) ($'000) ($'000)
2012-13
Save for Tax Payment
• Paper certificate 4 7 25 109 5
• Save-As-You-Earn Scheme 44,766 73,428 40,123 73,611 162
• Electronic Tax Reserve Certificates Scheme 41,787 299,700 38,742 271,408 101
Security for Tax in Dispute 1,500 2,291,308 1,280 3,432,117 18,322
Total 88,057 2,664,443 80,170 3,777,245 18,590
($'000) ($'000) ($'000)
2013-14
Save for Tax Payment
• Paper certificate 3 3 58 80 12
• Save-As-You-Earn Scheme 44,617 73,071 47,096 75,342 140
• Electronic Tax Reserve Certificates Scheme 43,367 332,138 42,506 326,295 106
Security for Tax in Dispute 1,409 2,738,027 1,565 3,511,091 25,525
Annual Report 2013-1460
SCHEDULE 13 EARNINGS AND PROFITS TAX - OFFENCES COMMITTED AND COURT FINES IMPOSED 2013-14
($) ($) ($) ($) ($) ($)
Profits Tax
• Corporations 7,093 16,309,300 662 3,051,200 0 0 0 0 4 8,316,000 7,759 27,676,500
• Unincorporated Businesses 309 655,700 32 154,300 0 0 0 0 0 0 341 810,000
Salaries Tax
• Employees 1,420 3,140,560 169 671,900 2 40,716 0 0 0 0 1,591 3,853,176
• Employers 153 388,900 45 224,700 0 0 0 0 0 0 198 613,600
Property Tax
• Individuals 42 104,700 6 29,400 2 34,704 0 0 0 0 50 168,804
Total 9,017 20,599,160 914 4,131,500 4 75,420 0 0 4 8,316,000 9,939 33,122,080
Failure to submit return, etc. offences [section 80(1)&(2)(d)]
Failure to comply with Court Order [section 80(2B)]
Inland Revenue Ordinance Wilfully with intent to evade tax or to assist other
persons to evade tax [section 82]
Furnishing incorrect return, statement or
information [section 80(2)(a),(b)&(c)]
Failure to comply with the requirement of section 51(2) to notify the
chargeability
[section 80(2)(e)] Total
Amount of
Fines No. of
Convictions
Annual Report 2013-14Annual Report 2013-14
SCHEDULE 14 EARNINGS AND PROFITS TAX - SURCHARGES ADDED, OFFENCES COMPOUNDED, ADDITIONAL TAX IMPOSED AND COSTS AWARDED BY THE BOARD OF REVIEW
2013-14
($) ($) ($) ($) ($) ($)
Surcharge for late payment of tax 18,958 15,218,363 185,995 137,650,201 10,357 123,906,478 6,894 15,896,291 14,594 9,327,439 236,798 301,998,772 Compound Penalties for offences under
the Inland Revenue Ordinance
• section 51(4B)* 0 0 1 800 4 8,400 1 10,000 0 0 6 19,200
• section 80(1) 4 153,000 860 4,110,094 155 8,680,200 137 6,775,000 0 0 1,156 19,718,294
• section 80(2) 763 11,136,489 9,926 82,413,813 7,426 334,162,027 1,167 108,820,111 152 346,300 19,434 536,878,740
• section 82(1) 4 478,200 48 6,491,770 52 100,548,000 25 6,399,100 0 0 129 113,917,070
• section 82(2) 0 0 0 0 0 0 0 0 0 0 0 0
Additional Tax imposed under section 82A of the Inland Revenue Ordinance
219 571,000 291 2,650,767 814 60,825,875 86 1,900,300 14 107,300 1,424 66,055,242
Costs awarded by the Board of Review 1 5,000 7 23,000 3 9,000 0 0 0 0 11 37,000
Total 19,949 27,562,052 197,128 233,340,445 18,811 628,139,980 8,310 139,800,802 14,760 9,781,039 258,958 1,038,624,318
Property Tax Salaries Tax Profits Tax
(Corporations)
Profits Tax (Unincorporated
Businesses) Personal Assessment Total
Amount Amount
Amount Amount
Amount
Amount No. of
Impositions No. of
Impositions No. of
Impositions No. of
Impositions No. of
Impositions No. of
Impositions
* Including penalties imposed by the Court
Inland Revenue Department
The Government of the Hong Kong Special Administrative Region www.ird.gov.hk