Filing of Tax Returns
Individual tax returns (BIR60) can now be filed electronically except those which require submission of supporting documents. For instance, taxpayer who is operating sole proprietorship business with a gross annual income over $500,000 or who claims full or partial exemption of his employment income must file their returns by paper. E-filing is also available to property tax returns (BIR57) unless the property is jointly-owned or co-owned by more than two owners.

In the United States, similar e-filing services are being offered in over twenty states. Finance Act 2002 provides mandatory e-filing for business though extension to individuals is so far not expected at this point. In addition, the Bush budget has proposed filing of federal returns directly to the Inland Revenue Service website at no cost.

Company Registration
The Company Registry of Hong Kong is committed to establish a fully computerized system for filing, processing and disseminating information. Upon implementation of the Companies Registry's Strategic Change Plan in 2004, electronic filing and automated documents processing and a business knowledge repository will be implemented. By August 2004 full implementation of e-filing will be completed. The public will be able to incorporate companies and submit documents electronically. New sole proprietorship, new partnership businesses or new branches of any registered business can be registered through the Electronic Service Delivery Scheme, a key initiative under the "Digital 21" Information Technology Strategy of the Government. Application must be signed digitally by using a digital certificate, either personal or organizational. The required registration fee is paid online. A Business/Branch Registration Certificate for a successful application will then be issued by post or be available for collection in person within two working days, depending on the selected delivery mode.

The United States now registers companies on a state-by-state basis, with some more advanced than others in the use of electronic filing methods. Australia and New Zealand have e-filing systems in place while Britain and Singapore are about to introduce such a system.

Filing of Court Documents and Lawsuits
Currently court documents can only be filed manually in Hong Kong, and electronic filing is unlikely to be available in the near term.

The United States is much ahead in this regard. In September this year, Texas launched a pilot scheme in which a selected group of Bexar County attorneys will be able to file lawsuits electronically. The pilot scheme will use a statewide electronic post office to pass court documents from the filer's service provider to the court clerk. An electronic stamp acknowledging the filing of a document will be then sent back to the filer through the service provider. The scheme will initially be limited to civil suits and a specific group of attorneys. It will soon be expanded to include other interested law firms and pro se litigants or people acting as their own attorneys. An additional eight counties are expected to be added and the first lawsuit is expected to be filed electronically by the end of October.

Land Registration
Canada offers the world's first system of electronic registration for land title documents in twelve jurisdictions, including Toronto. This means that more than half of all land-related documents in Canada can be filed electronically.

The popularity of e-filing is not soaring despite the tremendous costs spent on promoting and expanding its acceptance. The main reason is security concerns. In the United States, it has been reported that individual and business information had been compromised by hackers; taxpayers generally still prefer paper filing. In the first three quarters of 2002, only one-ninetieth of the submitted returns have been filed online. To encourage e-filing, the filing deadline has been extended for taxpayers filing online.

Nonetheless, e-filing, with its many benefits, will soon become the main alternative to paper filing when the technical problems of e-filing are gradually solved by new technology and system. It saves time by instant transmission of data and acknowledgement of receipt and frees up space of keeping documents. More importantly, it enhances accuracy through online verification of data input in real-time.

Undoubtedly, e-filing is destined to be the dominant filing method of choice and a vital tool for conducting business in the globalised economy.