Hi,
Recently, I received a letter from the HK Tax Department seeking for an audit on 2006 tax return on my sole proprietorship business which I have closed since 2007. I paid profit tax in 2005 and make a loss in 2006 and closed the business in 2007. To be honest, I may have lost most of the receipts and documents proofing the expenses claimed in my tax return after closing the business in HK and moved out of HK. Now the Tax Dept demand explanation and document proof for some of the expenses such as entertainment and travelling expenses incurred in year 2006. What should I do? I need some professional advice??