What You Shouldn’t Be Doing When You Get The Tax Bill

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Let’s be honest, no one likes bills! Yet we cannot, not use the services offered. At the end of the day you’ve got to realize that everything comes with a price. So even if you are using that street lamp at night or driving on the recently tared road, you need to pay for it. If not directly then indirectly through taxes. There might be times where we cannot afford to pay them, so here is what you should certainly not be doing in such instances.  

Not filing in  

Just because you don’t file in your taxes, doesn’t mean it doesn’t exist. Not filing in these taxes could cause even more trouble than the tax amount itself. You might have to end up taking out a tax loan Hong Kong to simply set off the additional penalty charges you had to face as a result of being the ignorant citizen you shouldn’t be being. The government isn’t dumb, then know EVERYTHING! So when you don’t file in, you are noted in the system and for every month of delay you are charged with 5% extra that goes up to 25%, plus interest on the bill. Bottom line, you’ll be owning much more than the initial amount!  

Not requesting for an extension  

If you know you wouldn’t be able to pay taxes this month or the upcoming months of the first quarter, because of the tight financial situations, make sure that you inform the IRS of it. Even when your options of taking out a tax loan is gone, you need to let them know so that they could help you out. Generally, there is a six month period of extension that is given. And if you do request for it and you are granted with it, then you wouldn’t have to pay the penalty charges that would be accounted for, under normal circumstances. So don’t make the mistake of ignoring the bill and this option. View more information by visiting https://www.221.com.hk/en/ 

Not planning things out 

Once you’ve got the extension for the amount due, next you need to start planning out how you are going to settle off the dues without comprising too much. You could design your own payment plan and allot the costs to bear for each month in order to pay off what you owe. But not doing anything at all could affect a lot when the extension days run out. And at end of the day, there would be no difference at all in terms of the cost you would have to bear, and it could even increase! Today there are online payment plans that allows you to settle the dues on an instalment basis, making it easier to pay off. There are also special firms set up to help with such instalment schemes. So look in to these as well. 

Use the above tips and deal with your tax arrears better!