How to avoid the penalty for late payment of tax?

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  1. #1

    Join Date
    Jun 2009
    Posts
    107

    How to avoid the penalty for late payment of tax?

    I was asked to pay two installments of tax in Jan. The first installment (the majority of tax due) was due on Mar 2 and the second Apr 29.

    Unfortunately, I forgot to pay the first installment on time. I paid online on March 6 o 7, and paid both installments at that time.

    So it was in default and according to the note under the installments in that tax payment letter, I will imposed a surcharge of 5% of the amount in default.

    But I have not yet received any letter asking to payment the default surcharge.

    So do I still need to pay the surcharge? If so, is it possible for me to avoid the payment? And what should I do?

    Anyway, this was my first time to pay tax in HK.


  2. #2

    Join Date
    Oct 2005
    Posts
    14,414

    Just wait till they send you notification of late payment, Otherwise say nothing.

    If you're charged you're charged, no getting out of it and you were told the deadline dates.


  3. #3

    Join Date
    Mar 2007
    Location
    Gold Coast Marina
    Posts
    17,934

    I've been a couple of day late before and rang them up to apologise and they were fine about it. I expect because you paid the second one early they will waive the fee.


  4. #4

    Join Date
    Aug 2009
    Posts
    2,711
    Quote Originally Posted by jimbo:
    If you're charged you're charged, no getting out of it and you were told the deadline dates.
    Clearly not correct. I once paid 1 month late.

    I called up my account officer, explained the situation (i.e. oversight), and he said that i should write a formal letter to him, explain my oversight and also mention my good payment record. In addition i should pay the full amount right away.

    Shortly after i got a letter back saying that the 5% penalty is waived.

  5. #5

    Join Date
    Apr 2010
    Posts
    63

    Since you were only a few days late, you can easily waive the penalty by calling them and explaining the situation. You'll normally be fine after talking to the officer!


  6. #6

    Join Date
    Jun 2009
    Posts
    107

    Thanks all for the information.

    Should I call now or wait until the letter arrives? Or should I call them to double check whether there is a fine for me?


  7. #7

    Join Date
    Apr 2010
    Posts
    63

    I think you should call...at least to confirm whether there's a fine. Maybe you'll find out that they are actually not penalising you and you won't have to worry about that anymore


  8. #8

    Join Date
    Aug 2005
    Location
    Clear Water Bay (In Da Jungle)
    Posts
    9,968

    previously i just ignored my late payment notice, paid what was initially due and nothing became of it, I mean it was only a few hundred bucks i think.

    Once quite a few years back, i didnt even bother paying my 2nd installment, letters was sent etc etc, after like 8 months they finally seized it from my bank account. You can run but you cant hide. IRD will get you. P


  9. #9

    Join Date
    Feb 2011
    Posts
    2

    5% surcharge notice issued automatically by system of IRD. Once it has been issued, unless you have reasonable grounds, it is not easy to get the penalty waived. If you realized that your payment is going to be late, always call the tax officer first as they can make a remark in system and allow you with enough time to settle the payment before auto penalty notice being issued.