Hi
There is a debate on wether a HK company doing only offshore business should return anything more than a "Nihil return " profit tax return.
Many CPAs advise proper audit (which is charged accordingly by the CPAs ) whereas others claim the Nihil Return is enough. It looks dodgy yet as I've seen those latter CPAs beeing recommended by InvestHK for several years.
Upon investigating further I heard it's better to do so that the HK company -dealing offshore and not submitted to profit tax - never has filed anything else than Nihil Return in the past and that it's possible the IRD will contact them for a tax audit - in which case a proper accounting needs to be provided and the issue is solved as long as the HK company can show it deserve the profit tax exemption dur to the offshore nature of its business.
What is your experience on this issue ? Are those tax audit easy to deal with and frequent ?
I'm wondering because communication issues with my present CPA have lead to 15months delays in PTRs and I'm wondering wether filing Nihil Returns for 2007/2008 and 2008/2009 or going through the audit. ( the former and first PTR was Nihil return btw)