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Volume 15 Second Supplement

Publication Date: Apr 2001

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DIGEST OF CASES REPORTED

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  Decision No. Download
PENALTY TAX    

failure to furnish duly completed tax returns for five years - estimated assessments made and paid without objection - no mitigating factor - additional assessments made upon investigation - no reasonable excuse for omission - additional assessments found to be manifestly inadequate - the Board increased the assessments to 100% - ss 68(8)(a) and 82B(3) of the Inland Revenue Ordinance ('IRO')  

D65/00 Download D65/00 (DOC) - English Download D65/00 (PDF) - English

incorrect return by omitting income - gain from exercise of share option - costs - ss 82A, 82B and 68 of the Inland Revenue Ordinance ('IRO'), chapter 112  

D67/00 Download D67/00 (DOC) - English Download D67/00 (PDF) - English

payment terms - reasonable excuse - Inland Revenue Ordinance ('IRO') s 82A  

D75/00 Download D75/00 (DOC) - English Download D75/00 (PDF) - English

starting point - extenuating factors - Inland Revenue Ordinance ('IRO') s 82A  

D69/00 Download D69/00 (DOC) - English Download D69/00 (PDF) - English
PERSONAL ASSESSMENT TAX    

loss sustained by share dealing business - meaning of 'trade' and 'business' - ss 2, 14(1), 42(2)(b) and 68(4) of the Inland Revenue Ordinance ('IRO') - s 5A of the Companies Ordinance  

D74/00 Download D74/00 (DOC) - English Download D74/00 (PDF) - English
PROFITS TAX    

acquisition and sale of property - intention at time of purchase - burden of proof on purchaser to establish that property purchased for long term investment  

D18/00 Download D18/00 (DOC) - English Download D18/00 (PDF) - English

acquisition and sale of property - intention at time of purchase - burden of proof on purchaser to establish that property purchased for long term investment - credibility of the taxpayer before the Board - s 68(4) of Inland Revenue Ordinance  

D5/00 Download D5/00 (DOC) - English Download D5/00 (PDF) - English

acquisition and sale of property - intention of purchaser at time of acquisition - burden of proof on purchaser -whether tax chargeable on the profits of sale - s 68(4) of Inland Revenue Ordinance  

D31/00 Download D31/00 (DOC) - English Download D31/00 (PDF) - English

real property - whether the gains arising from the disposal of a property was liable for profits tax  

D84/00 Download D84/00 (DOC) - English Download D84/00 (PDF) - English

real property - whether the gains arising from the disposal of a property was liable for profits tax - ss 2, 14(1) and 68(4) of the Inland Revenue Ordinance ('IRO')  

D66/00 Download D66/00 (DOC) - English Download D66/00 (PDF) - English

sale of property - trading or capital gain - alleged error in tax turn - correction under s 70A of the Inland Revenue Ordinance ('IRO') chapter 112 - s 68 of the IRO chapter 112  

D46/00 Download D46/00 (DOC) - English Download D46/00 (PDF) - English

sale of property - whether capital gain or trading gain - whether the sale and purchase of the property amounted to an adventure in the nature of trade  

D60/00 Download D60/00 (DOC) - English Download D60/00 (PDF) - English

sale of property - whether profits derived from the sale of the property assessable to profits tax - ss 2 and 68(4) of the Inland Revenue Ordinance ('IRO') - onus of proof - intention of the taxpayer - termination of the lease by the tenant - financial difficulty - whether the quick sale is inconsistent with the long term investment intention  

D63/00 Download D63/00 (DOC) - English Download D63/00 (PDF) - English

sale of shares in private company - whether investment or trade  

D68/00 Download D68/00 (DOC) - English Download D68/00 (PDF) - English

service company - deductions claimed in respect of rent of residential home - whether properly deducted - Departmental Interpretation and Practice Note No 24 ('DIPN 24') - whether retrospectively effective - ss 16(1), 17(1), 61 and 68(4) of Inland Revenue Ordinance ('IRO')  

D53/00 Download D53/00 (DOC) - English Download D53/00 (PDF) - English

source of profits - within or outside Hong Kong - Departmental Interpretation Practice Note 21 ('DIPN 21') - whether profits arose in or were derived from Hong Kong from a trade, profession or business - ss 2, 14 of the Inland Revenue Ordinance ('IRO')  

D55/00 Download D55/00 (DOC) - English Download D55/00 (PDF) - English
SALARIES TAX    

additional assessment - interest free loan during study leave - deductions in respect of expenses incidental to study - ss 8(1), 8(2), 9(1), 11B, 11D, and 12(1) of the Inland Revenue Ordinance ('IRO')  

D83/00 Download D83/00 (DOC) - English Download D83/00 (PDF) - English

employment - place of performance - source of income - 60 days limit - whether liable to salaries tax - totality of facts test - when income could be apportioned for determination of salaries tax - ss 8(1) and 8(1A) of the Inland Revenue Ordinance ('IRO')  

D87/00 Download D87/00 (DOC) - English Download D87/00 (PDF) - English

employment - whether liable to salaries tax - whether taxpayer was carrying on business on her own account  

D79/00 Download D79/00 (DOC) - English Download D79/00 (PDF) - English

s 68(4) of the Inland Revenue Ordinance ('IRO') - onus of proof - whether an employment income arose in or was derived from Hong Kong - two-contract arrangement - interpretation of the facts - tax-consideration motivation  

D76/00 Download D76/00 (DOC) - English Download D76/00 (PDF) - English

s 8(1) of the Inland Revenue Ordinance ('IRO')- whether income arising in or derived from employment - whether 'top-up supplement' amount paid on leave was in the nature of an ex gratia payment  

D80/00 Download D80/00 (DOC) - English Download D80/00 (PDF) - English

termination of employment - whether salary and supplementary allowance paid for the period in which the payee was not required to work was liable to salaries tax - ss 8(1) and 9 of the Inland Revenue Ordinance ('IRO')  

D88/00 Download D88/00 (DOC) - English Download D88/00 (PDF) - English

whether certain sums were paid by employer as a refund of rent - appeal lodged outside the prescribed period - ss 61 and 66 of the Inland Revenue Ordinance ('IRO')  

D85/00 Download D85/00 (DOC) - English Download D85/00 (PDF) - English

whether housing allowance or rent refund - whether transaction artificial or fictitious - Inland Revenue Ordinance ('IRO') ss 8(1), 9(1A) and 61  

D56/00 Download D56/00 (DOC) - English Download D56/00 (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 28.2.2001), please click here.

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