Regarding the report released today (August 31) by the Office of The Ombudsman (Ombudsman) on its direct investigation into "Unsuccessful Delivery of Electronic Tax Returns Submitted by Members of the Public to Inland Revenue Department", the Inland Revenue Department (IRD) responds as follows:
 
     The IRD expressed gratitude to the Ombudsman for its review of the submission of electronic tax returns by members of the public. The IRD accepts all recommendations put forward by the Ombudsman and has actively followed up on their implementation, with the majority of them having already commenced or been completed. The situation mentioned in the report mainly concerns taxpayers' submission of tax returns last year. With new enhancement measures already put in place before the issuance of the individual tax returns for the year of assessment 2025/26 in May 2026, the IRD has not received similar complaints from taxpayers thereafter.
 
     The IRD is highly concerned that some taxpayers, after completing the digital signing via "iAM Smart" while filing their tax returns through eTAX last year, did not return from "iAM Smart" to eTAX to complete the entire tax return filing process due to factors such as user actions, status of browsers or mobile devices, or network anomalies or interruptions, resulting in the tax returns not being submitted to the IRD.
 
     The IRD actively initiated follow-up actions and enhanced the system and workflow after receiving reports from taxpayers last year, and has been fully co-operating with the Ombudsman during its direct investigation.
 
     Following a joint review by the IRD and the Digital Policy Office (DPO) on the relevant procedures, the following measures were launched prior to the bulk issuance of individual tax returns this May:
 
(1) A pop-up message has been added to eTAX to remind users that they must return to the eTAX system to complete the tax return filing process after completing the digital signing via "iAM Smart";
 
(2) Users who have successfully submitted their tax returns will receive confirmation messages in their eTAX message boxes;
 
(3) The message displayed on the relevant confirmation page, as well as the "iAM Smart" electronic notifications and emails sent to users following the completion of digital signing via "iAM Smart", have been enhanced to remind taxpayers to return to the eTAX system to complete the tax return filing process; and
 
(4) Information entered by users in eTAX will be temporarily saved automatically. This arrangement will save users the trouble of re-entering tax return details should they need to perform again the relevant process when they fail to sign or submit their tax returns for various reasons.
 
     According to records, between May last year and this January, about 490 000 people had used "iAM Smart" to sign their individual tax returns via eTAX, and among them, over 90 per cent of them successfully submitted their tax returns upon their first attempt using "iAM Smart" to sign their tax returns. As for the about 33 000 taxpayers who failed to submit their tax returns upon their first attempt using "iAM Smart" to sign their tax returns mentioned in the press report, about 80 per cent of them had reused "iAM Smart" to sign and submit their tax returns successfully before the IRD issued penalty notices and/or notices of estimated assessment. Furthermore, among the abovementioned 33 000 taxpayers, about 14 000 taxpayers used "iAM Smart" again to sign and successfully submit their tax returns on the very same day they had made their initial attempt.
 
     The IRD sincerely apologises for the inconvenience caused to taxpayers by this incident and is actively following up on the relevant cases. The IRD emphasises that no taxpayers will be penalised due to the aforementioned incident. Penalty remissions will be granted and penalty payments will be refunded for taxpayers who filed their tax returns after the submission deadline as a result of the incident. The IRD has notified the relevant taxpayers via eTAX regarding the arrangements for the refunds of penalties. The two prosecutions related to the incident have also been withdrawn.
 
     The IRD has also been processing cases requesting revisions of assessments. Furthermore, for cases where taxpayers received notices of estimated assessments but did not request a revision, the IRD will issue letters to the relevant taxpayers before mid-September to remind them that if they consider the assessments failed to take into account the information provided in their tax returns, they may apply for a revision of assessments, and the IRD will process the applications as soon as possible.
 
     The IRD has been committed to driving the digitalisation of taxation and the continuous enhancement of electronic tax services. It will continue to fully leverage information technology to provide taxpayers with a more convenient and user-friendly experience. It will continue to explore further enhancements of the business process of eTAX, and will discuss with the DPO relevant connection mechanisms with "iAM Smart", with a view to providing even better electronic tax services to members of the public. It will also enhance the electronic demonstrations for electronic tax return filing provided on its website (New Tax Portals Learning Resources Centre) to help users understand more clearly the entire filing process of electronic tax returns.
 
     The IRD will strengthen its staff’s sensitivity and vigilance. Apart from providing immediate assistance to resolve issues raised in public enquiries, prompt follow-up actions should be taken where systemic problems are detected.

Ends/Monday, August 31, 2026
Issued at HKT 18:00

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