The Assess First Audit Later (AFAL) system

Since April 2001, in order to streamline the assessing procedures, the Department has used a computerised AFAL system for screening tax returns for automated assessment and selecting cases for post assessment audit and investigation. Data in the returns submitted by taxpayers are first input into the AFAL system. The AFAL system screens out the returns which meet the pre- set criteria for automated assessment. A certain percentage of these automated assessments are then selected based on additional criteria for audit and investigation by assessing officers.

Returns not meeting the pre-set criteria for automated assessment are screened manually by assessing officers to determine whether they should be subject to in-depth examination prior to assessment.

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

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