Responding to a Tax Claim

Within 14 days after the service of the Writ of Summons (Form No. 1) on you, you should either satisfy the claim or return to the Registry of the District Court (the "Registry") the accompanying Acknowledgment of Service (Form No. 14) stating therein whether you intend to contest the proceedings or make an admission.

If you intend to contest the proceedings

You should file a defence with the Registry and serve a copy on the Inland Revenue Department within 28 days after the time for acknowledging service of the Writ.

If you intend to make an admission

Pursuant to Order 13A of Rules of the District Court (Chapter 336H), you may admit the whole (full admission) or part (partial admission) of the claim and request for time to pay the claim.

Full admission

  • You may consider making an admission by completing Form No. 16 accompanying the Writ of Summons.
  • You may request for time to pay the claim by making a proposal as to the date of payment or by instalments in the Form No. 16. 
  • You must file the Form No. 16 with the Registry and serve a copy on the Inland Revenue Department within 28 days after the time for acknowledging service of the Writ.
  • If the Inland Revenue Department accepts your request for time to pay the admitted claim, a judgment will be entered against you with the time for payment as proposed.  You have to pay the amount at the time and rate as stated in the judgment; otherwise, the Inland Revenue Department may enforce payment of the whole unpaid balance under the judgment immediately.
  • If the Inland Revenue Department does not accept your request for time to pay the admitted claim, the Court will determine the date or the times and rate of payment.

Partial admission

If you admit part of the claim only in the Form No. 16, the Inland Revenue Department will not accept the amount admitted and wishes the proceedings to continue.

Note: Pursuant to sections 49 and 50 of the District Court Ordinance (Chapter 336), judgment debt shall carry interest from the date of commencement of proceedings to the date on which full settlement is made.  To minimize the judgment interest to be payable, please settle the outstanding judgment debt immediately.

 

More information about Judgment Interest
Last review date: August 2017