Being Unaware of Paying Superfluous Tax over HK$100,000

Recently, there was a business client moving overseas and re-directed all his tax related mails to our Company. We then discovered that he had his rental income paid tax in property tax for a long time, without using his personal allowances to offset his rental income. This made him pay more than HK$20,000 tax every year and it has accumulated to over HK$100,000 in past several years.

Taxpayers always think that is more time and money-saving to complete and file the tax return by themselves. On the contrary, they may pay much more tax without noticing it. There are many causes for it:

(1) they do not know the relations and deductions between different kinds of taxes,

(2) they do not know the differences between the calculations of different types of taxes and do not aware that they have other tax assessment choices, and

(3) they do not aware the many deductions allowable under the current tax rules.

Therefore, if a taxpayer has multi sources of income, but not just salary income, such as property and profits tax, it is advisable to recruit an experienced tax professional to handle his tax affairs. This can help to avoid unnecessary over-pay of taxes.