Raymond Yeung Tax Consultant former Assessor of Inland Revenue Department 前稅局評稅主任楊輝洪

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Field audit


To deter tax evasion and tax avoidance, the Revenue has set up tax audit teams. Their chief function is to supplement the tax investigation section to promote voluntary tax compliance by face-to-face meeting with the taxpayers. At times, the audit officers visit the taxpayers' premises to examine the business records and the business operations.


Their approach is result oriented. Rather than adopting a random fishing tactic, they are inclined to target at areas prone to non-compliance. For example, they like to select the following cases for audit.

  • The audit report is heavily qualified;

  • The business has a low turnover or profit percentage;

  • The taxpayer fails to file a timely or a correct tax returns;

  • The business records are incomplete;

  • The taxpayer omits to disclose some important information; or

  • The industry generally does not have a good compliance.

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