Hong Kong IRD Implements eTAX Safeguards After Ombudsman Report

The Inland Revenue Department (IRD) has accepted all recommendations from the Office of the Ombudsman regarding the 2024‑25 electronic tax return submissions. It has waived related penalties and introduced new safeguards, including a pop‑up reminder that users must return to eTAX after signing via "iAM Smart" and automatic temporary saving of entered data. Between May last year and January, about 490,000 taxpayers used "iAM Smart"; over 90% submitted on the first attempt, while roughly 33,000 failed initially. About 80% of those re‑signed successfully before any penalty notices, and 14,000 did so on the same day. No penalties will be applied, refunds will be issued, and two related prosecutions have been withdrawn. The IRD will send letters by mid‑September to taxpayers who received estimated assessments, offering a revision option.