We have witnessed rapid changes recently in the international taxation regime, especially on tax compliance and transparency. Tax administrations around the world attempt to protect their tax base through unilateral and collective efforts, henceforth the introduction of the US' Foreign Account Tax Compliance Act (FATCA), and the OECD's Common Reporting Standard (CRS) for Automatic Exchange of Financial Account Information in Tax Matters (AEOI) and Base Erosion and Profit Shifting (BEPS). These measures inevitably impact businesses, notably in the area of regulatory compliance such as tax audits.
Following a very well-received talk on the implications of AEOI on tax audits in Hong Kong on 25 April, the Chamber is pleased to organise a series of tax controversy workshop again with Ernst & Young's Hong Kong Tax Controversy Team. To help members stay on the right side of the law, Wilson Cheng, Partner from EY and his team, will provide insights based on his years of tax audit expertise and practical experience dealing with the Field Audit and Investigation Unit (FAI Unit) of the Inland Revenue Department (IRD). The workshop will cover basic knowledge of handling tax audit cases, regulatory framework, administrative and procedural matters, update on the recent developments on the practices and focuses of the FAI Unit, and actual and practical tax audit case study.
Workshop 1 – "Introduction of Tax Field Audit and Investigation in Hong Kong" on 20 November 2017
i. What is tax controversy and what does it involve
ii. Structure of the IRD and FAI Unit
iii. High-level review of the tax audit process
iv. IRD case selection method
v. Common tax issues under audit
vi. How do taxpayers know whether they are being tax audited
Workshop 2 – "Understanding the IRD Tax Audit Approaches" on 22 November 2017
Workshop 3 – "Tax Audit Settlement & Negotiation Strategy" on 29 November 2017
This series of workshops should be of interest to all those who would like to have a better understanding of tax audits in Hong Kong, particularly relevant to solicitors, accountants and people who work in the Accounting/Finance/Tax/Legal departments.