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Risks and consequences
Risks and consequences
Review of offshore claims on trading and e-commerce profits has tightened in recent years. Where the substantive operations — marketing, negotiation, decisions — sit in Hong Kong, the claim can be overturned, with back tax and penalties under ss.80/82A and possible prosecution. Complete operational records (travel, correspondence, decision papers) are the foundation of any claim; books and records must be kept for at least 7 years after the transaction (IRO s.51C).
Case-specific decisions differ — book a consultation with our advisers.
The content of this page is general professional information and does not constitute tax, legal or investment advice. For specific cases, please consult a Hong Kong practising accountant or tax adviser, or refer to official publications of the IRD / SFC / HKMA / CR.