As citizens of a country it is our duty to pay to the nation and help contribute towards the growth of the nation. And so, paying taxes on time is one way of contributing. Tariffs are the primary source of income of any government and it is what they use in funding various development projects and providing the citizens with public goods that could be used by all with no restriction at all whatsoever. And although we may not like doing this, trying to skip on this payment is sure to have quite the heavy consequences. And here are some them, that will definitely make you think twice on skipping your compulsory payment to the government.
Taxing considers two scenarios when the consequences are valued, one is where you don’t pay at all and the other is where you don’t file your tariff. When you don’t file your taxes you are charged with a penalty of an added 5% from the tariffs you actually owe during the first five-month period with a minimum sum that amounts to $135 and as this continues the percentage may even increase to 100%. And if you don’t pay at all, then the consequences are even severe. Where you’d be charged with other costs in addition to this penalty fee as well. So in order to avoid all of this it is better to hire a US tax in Hong Kong and file your tariffs the right way.
An interest cost
The Inland Revenue department charges an interest as well. this is because they need to compensate for the time value of money, especially when there has been years’ worth of arrears. And so this is one of the added costs a person who has not paid his taxes would be facing in addition to the above mentioned penalty. The rates for these are generally determined by the state short term interest rates. And so, they may vary from one percent to four percent, depending on the other affecting factors as well.
These are the kind of mails you surely want to avoid receiving, and through the help of a US tax advisor you can easily make sure that not only you pay the right tariffs but you also avoid facing the potential consequences of not paying them on time. During the initial stages, the Inland Revenue would send you such mails in order to inform you of your deferred payments and as you continue to avoid them the repercussions and consequences of it increase over time. So it would be in your best interest to make sure you pay heed to these.
Pay your tariffs on time and avoid the cost of these consequences that follow!