How can the tax assessment result be different than expected? If you find that there is a sudden increase in the provisional tax payment, or if you are not satisfied with the result, you can actually file an “objection to the tax assessment” with the Inland Revenue Department! What is the procedure for applying for objection to tax assessment? Can I appeal again? This article will summarize the methods of objecting and appealing the tax assessment results, hoping to help taxpayers who want to recover the tax exemption and tax deduction items.
Review of Tax Notices
When the taxpayer receives the “Notice of Assessment”, it is the duty of the taxpayer to carefully check whether all the items in it, including the listed income, profits, allowances, etc., are correct. Moreover, if taxpayers are not approved when claiming allowances and deductions, they can pay special attention to the “Assessor’s Note” to check the reasons for the failure and understand the tax assessment basis.
How to lodge an objection or appeal against the tax assessment result?
If the taxpayer disagrees with the tax assessment, you can lodge an objection and appeal to the Inland Revenue Department.
Form IR831 to file a written objection:
The taxpayer can fill in the “IR831 Form” within 1 month after the date of the notice of assessment (Personal Assessment will not extend the objection period for property tax, profits tax or salaries tax). Some of the clear reasons, such as the taxable income being too high, certain expenses not deducted, etc., need to be signed by the taxpayer himself or an authorized representative, and then return the form to the Inland Revenue Department by post or fax:
By post to “P.O. Box 28777, Gloucester Road Post Office, Hong Kong”;
Fax to “2877 1232”.
If the estimated assessment is because the taxpayer did not file a tax return, then you should file the tax return and accounts together with your notice of objection.
eTAX account, objection electronically:
If the taxpayer has applied for an eTAX account, you can submit a notice of objection to the assessment of salaries tax, property tax on sole proprietorship and/or profits tax on sole proprietorship through the account.
If the notice of objection is submitted in an electronic form, the taxpayer must remember to generate the relevant electronic record and digitally sign it in the “Government Electronic Form”.
When can I receive a reply to objection to tax assessment?
Taking the taxpayer’s written objection as an example, the IRD will usually reply within 12-18 working days of receipt of the objection. The Inland Revenue Department will directly list the “tax that is temporarily not payable due to objection” and the “balance of tax payable”.
Also, in many cases, the Assessor may require further information or factual basis. After considering this information, the Assessor will have the opportunity to revise the assessment or issue a revised assessment proposal to you.
The entire process will take about 4 months to process. If it is determined that there is a real overpayment of tax, the Inland Revenue Department will send a cheque to the last provided mailing address.
I am still dissatisfied with the result of the objection assessment, can I appeal?
If the taxpayer still fails to accept the objection assessment and the case is not agreed, you still have the option of appealing. The case will be referred to the Appeals Team for careful review, and finally the case may be referred to the Commissioner or Deputy Commissioner of Inland Revenue for decision, and the taxpayer will be notified in writing within a reasonable time.
If you still do not agree with the ruling, you can appeal to the Tax Appeal Board within 1 month after the ruling is issued, or even to the court.
The above information is for reference only. If you have any questions about tax declaration and accounting, we welcome your inquiries.