To fight against tax evasion and tax avoidance cases, the Field Audit and Investigation Unit with Inland Revenue Department ("IRD") are primarily responsible for the audit and investigation cases where tax evasion is suspected. 　In order to enhance the effectiveness in identifying cases for audit and investigation, since April 2001, IRD adopted customized assisted case selection program for screening of cases which resulted in:

  　 Desk audit [►Details]           Field audit [►Details]           In-depth tax investigation [►Details]

Indication of non-compliance for Field Audit and Tax Investigation:

- the auditors' report is heavily qualified

- a business has an unreasonably low turnover or profit percentage compared to market industry

- persistent failure to lodge, or late lodgment of, tax returns

- failure to keep proper business records

- failure to provide material information requested by an assessor 　 　

Settlement methods adopted by IRD:

Assets Betterment Statement method / Bank Deposits method / Business Economics (Percentage Computation) method / Projection method

Once tax evasion found, IRD is committed to combating strenuously by imposition of heavy penalties either administrative or prosecution action. Because of the severity of potential consequences of field audit or tax investigation by the IRD, taxpayers should not underestimate the impact that a tax audit could bring to its business. 　It is important that the taxpayers should take the necessary actions to bring the tax audit to an early conclusion.

With key member worked in IRD and Tax Investigation Unit for over 8 years and over 30 years of practical experiences in handling field audit and tax investigation, we are expertise in handling Field Audit and Tax Investigation.

Our services include: 　

- advise on the general procedures of Field Audit and Tax Investigation

- assess the tax implication of Field Audit and Tax Investigation

- conduct a detail audit review on books and records to identify potential problem areas

- attend IRD interview and meeting

- assist in full voluntary disclosure

- assist in preparation of settlement proposal with IRD on your behalf

- assist in preparation of penalty proposal on your behalf