Section 51C of the Inland Revenue Ordinance: Every person carrying on a trade, profession or business in Hong Kong must keep sufficient business records, either in English or Chinese, for his income and expenditure so as to enable his assessable profits to be ascertained. He must keep such records for at least 7 years. Failure to do so may render him liable to a penalty of HK$100,000.
In this respect, business record includes:
1. books recording receipts and payments, income and expenditure;
2. original documents such as vouchers, bank statements, invoices, bills, receipts, etc.;
3. books recording assets and liabilities;
4. books recording daily cash receipts and cash expenditures;
5. where the business involves dealing in goods –
a record of all goods purchased, and all goods sold showing date of transactions, the goods concerned, the suppliers, the customers;
a record of trading stock at the opening and also at the end of the accounting period and details of the stocktaking for preparation of the stock record;
6. where the business involves the provision of services-
* records of all the services provided showing date of transactions, the services and the customers.