Unclear wording in Hong Kong eTAX system caused over 33,000 to fail tax return submissions
Ombudsman finds thousands received penalty notices and two were prosecuted due to confusing digital signature steps.
Quick Look
More than 33,000 people failed to submit completed tax returns in Hong Kong due to unclear wording in the eTAX system, leading to thousands of penalties and two prosecutions, according to the ombudsman.
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Why It Matters
Taxpayers in Hong Kong must file returns within one month of issue under local law.
More than 33,000 people failed to submit completed tax returns because of unclear wording in Hong Kong’s eTAX system, the ombudsman has found, with nearly 5,200 receiving penalty notices and two prosecuted.
Dr Luk Che-chung, a former chief executive of the Hospital Authority’s Hong Kong East area, was among the affected taxpayers and urged the government on Tuesday to learn from the incident.
Between May 2 last year and January 31 this year, 489,425 taxpayers attempted to submit electronic returns using a digital signature on iAM Smart, the investigation found.
Of these, 33,019 did not complete the submission process, 5,169 received penalty notices and two were prosecuted. About 14,000 successfully resubmitted on the same day as their initial attempt.
Under Hong Kong law, taxpayers must file returns within one month of issue so the Inland Revenue Department (IRD) can prepare assessments and approve deductions.
Open Questions
- Will the government refund the penalties issued to affected taxpayers?
- What specific wording changes will be made to the eTAX system?
