Post Assessment Audit and Investigation

The AFAL system has been built on an analytical solution adopted by the Department to select cases for post assessment audits and investigations. After providing parameters to chosen criteria via the application interface, the required numbers of cases can be selected online. Additional selection criteria can be added to the case selection functions via the application interface, in response to compliance trends and emerging business practices.

By automating the screening of tax returns, the AFAL system facilitates the identification of potential high yield tax avoidance and evasion cases, and provides an effective means to measure tax compliance and ultimately promote voluntary compliance. The AFAL system enables the deployment of more resources to audit and investigation work. This approach brings about improved voluntary tax compliance and more effective enforcement.

Reference:

• DEPARTMENTAL INTERPRETATION AND PRACTICE NOTES NO. 11 (REVISED) FIELD AUDIT AND INVESTIGATION, Inland Revenue Department, The Government of the Hong Kong Special Administrative Region of the People's Republic of China https://www.ird.gov.hk/eng/pdf/dipn11.pdf