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Volume 12 Third Supplement

Publication Date: Jul 1998

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DIGEST OF CASES REPORTED

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  Decision No. Download
PENALTY TAX    

delay in submitting profits tax return - duty of the taxpayer to regulate its own affairs to comply with the Inland Revenue Ordinance - whether additional tax of 9.83% excessive - burden of proof on taxpayer  

D100/97 Download D100/97 (DOC) - English Download D100/97 (PDF) - English

failure to complete and return profits tax return within time limit - whether return received by taxpayer - whether requirements of the notice in the Return 'given' within the meaning of s 82A(1)(e) - non receipt - reasonable excuse  

D94/97 Download D94/97 (DOC) - English Download D94/97 (PDF) - English

incorrect salaries and individual tax returns - failure to disclose 93% of income over period of six years. Assets Betterment Statement - whether penalty tax of 110% excessive and unreasonable in the circumstances - s 82A of the Inland Revenue Ordinance  

D81/97 Download D81/97 (DOC) - English Download D81/97 (PDF) - English

incorrect salaries tax return - failure to complete the tax return properly - ignorant of law is not a defence - same rate of penalty should be adopted for the two years of assessments - 6.193% penalty under s 82A of the Inland Revenue Ordinance  

D89/97 Download D89/97 (DOC) - English Download D89/97 (PDF) - English

the Board of Review has no power to extend time for filing an appeal under s 82A - ignorant of law nor financial difficulty is not a ground for appeal - the Board of Review has no power to re-open the former decision by a different Board - 100% penalty under s 82A of the Inland Revenue Ordinance  

D96/97 Download D96/97 (DOC) - English Download D96/97 (PDF) - English
PROFITS TAX    

company incorporated to hold property - financial ability of the company - whether profits derived from the sale of a property assessable to profits tax - the lack of any documentary evidence of the property ever being put on the market or with estate agents - onus on the company to show its purpose  

D72/97 Download D72/97 (DOC) - English Download D72/97 (PDF) - English

disposal of property - investment or trade  

D80/97 Download D80/97 (DOC) - English Download D80/97 (PDF) - English

sale of property - unilateral declaration of the intention of the company - financial ability of the company - internal allocation of units to shareholders - change of the intention of the company  

D99/97 Download D99/97 (DOC) - English Download D99/97 (PDF) - English

whether profits derived from sale of properties assessable to profits tax - whether trading asset or capital asset - intention at the time of acquisition - subjective intention is to be tested against objective facts and circumstances  

D98/97 Download D98/97 (DOC) - English Download D98/97 (PDF) - English

whether profits realized from sale of property assessable to profit tax - whether the purchase and sale of the property amounted to an adventure in the nature of trade - whether building allowance should be granted in respect of the property - s 2, 14 of the Inland Revenue Ordinance, Chapter 112  

D76/97 Download D76/97 (DOC) - English Download D76/97 (PDF) - English

whether profits realized from sale of property assessable to profit tax - whether the purchase and sale of the property amounted to an adventure in the nature of trade or for purposes of self-residence and preservation of the value of the money - appeal frivolous and vexatious and an abuse of the process - s 68(9) of the Inland Revenue Ordinance, Chapter 112  

D102/97 Download D102/97 (DOC) - English Download D102/97 (PDF) - English

whether taxpayer entitled to deduct the 'Foreign Exchange Loss' in ascertaining profits - s 17(1) of the Inland Revenue Ordinance  

D73/97 Download D73/97 (DOC) - English Download D73/97 (PDF) - English
SALARIES TAX    

Disability Allowance - whether the Social Welfare Department is the only competent authority to decide a person's eligibility - whether eligibility can be determined before application to the Social Welfare Department - s 31A(1) of the Inland Revenue Ordinance - s 19 of the Interpretation and General Clauses Ordinance  

D92/97 Download D92/97 (DOC) - English Download D92/97 (PDF) - English

employment - locality of contract of employment - locality of payment of salary - locality of employer - whether liable to salaries tax on full income - s 8 of the Inland Revenue Ordinance  

D79/97 Download D79/97 (DOC) - English Download D79/97 (PDF) - English

tax scheme - whether the monies paid to the company wholly owned by the taxpayer and his wife could properly be regarded as remuneration to the taxpayer - whether the settlement payment by the employer was referable to the taxpayer's employment  

D103/97 Download D103/97 (DOC) - English Download D103/97 (PDF) - English

whether payment for termination of directorships is compensation for loss of office and assessable to salaries tax  

D84/97 Download D84/97 (DOC) - English Download D84/97 (PDF) - English

 

Note: The latest position of unsettled appeals is shown in either (a) Table of Appeals to Court of First Instance or (b) Table of Appeals to Court of Appeal/Court of Final Appeal. When the final outcome of an appeal is known, the position is set out in either table and will disappear in the next issue of Board of Review Decisions.

To view "Table of Appeals to Court of First Instance/Court of Appeal/Court of Final Appeal" (position as at 31.5.1998), please click here.

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