There are usually 2 outcomes.
- Either you are required to accept a compound offer involving a penalty that is often 3.000HKD and obligation to submit your signed & filled in profit tax return to the IRD.
- Or, you receive a tax assessment usually much higher than what you would have to pay.
For Option 1, It is mandatory to provide your PTR with your audited accounts. If you don’t do so, and even if you paid the fine, there is a high risk of receiving an increased fine or a court hearing notification.
For Option 2, you will have to pay the amount of taxes assessed by the IRD. Nevertheless, you can still get this amount back if you can submit your return on time. You have to act fast as the required amount is usually pretty high.