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F. Penalties for Salaries Tax avoidance

1. What will happen if I fail to file my tax return or provide false information to the Inland Revenue Department?

The duty to furnish tax return and information to the Commissioner for Inland Revenue is governed by section 51of the Inland Revenue Ordinance.


Under section 80(2) of the Inland Revenue Ordinance, any person who without reasonable excuse-


  1. makes an incorrect return by omitting or understating anything in respect of which he is required by the Ordinance to make a return, either on his behalf or on behalf of another person;
  2. makes an incorrect statement in connection with a claim for any deduction or allowance under the Ordinance;
  3. gives any incorrect information in relation to any matter or thing affecting his own liability (or the liability of any other person) to tax;
  4. fails to comply with the requirements of a notice given to him under section 51(1) or (2A); or
  5. fails to comply with section 51(2),

commits an offence and is liable on conviction to a fine of $10,000 and a further fine of treble the amount of tax which has been undercharged in consequence of such incorrect return, statement or information, or would have been so undercharged if the return, statement or information had been accepted as correct, or which has been undercharged in consequence of the failure to comply with a notice under section 51(1) or (2A) or a failure to comply with section 51(2), or which would have been undercharged if such failure had not been detected.