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Volume 15 Third Supplement

Publication Date: Jul 2001

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DIGEST OF CASES REPORTED

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  Decision No. Download
PENALTY TAX    

failure to report chargeability without reasonable excuse - grossly understated assessable profits in tax return for several years of assessment - no evidence of absence of intention to evade tax - duty on taxpayer to notify IRD of his chargeability - no duty on IRD to issue Form IRC 6121 - absence of Form IRC 6121 is no licence nor reasonable excuse for failing to notify IRD of a taxpayer's chargeability - penalty in the rate of 100% of the tax undercharged - ss 51 and 82A of Inland Revenue Ordinance ('IRO')  

D102/00 Download D102/00 (DOC) - English Download D102/00 (PDF) - English

incorrect return - no dishonest intent - ss 80(2)(b) and 82A of the Inland Revenue Ordinance ('IRO')  

D91/00 Download D91/00 (DOC) - English Download D91/00 (PDF) - English

late filing of tax return - reasonable excuse - mitigating factor - s 82A of the Inland Revenue Ordinance ('IRO')  

D96/00 Download D96/00 (DOC) - English Download D96/00 (PDF) - English

omission to include transportation allowance - unblemished record - whether assessment excessive  

D90/00 Download D90/00 (DOC) - English Download D90/00 (PDF) - English

real property - whether the gains arising from the disposal of properties were liable for profits tax - s 68(4) of the Inland Revenue Ordinance ('IRO')  

D129/00 Download D129/00 (DOC) - English Download D129/00 (PDF) - English

starting point - record of the taxpayer in preceding years - delay in submitting return  

D89/00 Download D89/00 (DOC) - English Download D89/00 (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 - whether tax chargeable upon profits derived from sale of property - what is an allowable deduction upon sale of property - ss 16(1) and 17 of the Inland Revenue Ordinance ('IRO')  

D118/00 Download D118/00 (DOC) - English Download D118/00 (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 the Inland Revenue Ordinance ('IRO')  

D111/00 Download D111/00 (DOC) - English Download D111/00 (PDF) - English

additional tax - deductibility - fees paid to a consultancy company by a barrister - ss 61, 68(4) and 68(9) of the Inland Revenue Ordinance ('IRO')  

D107/00 Download D107/00 (DOC) - English Download D107/00 (PDF) - English

real property - whether the gains arising from the disposal of properties were liable for profits tax  

D93/00 Download D93/00 (DOC) - English Download D93/00 (PDF) - English

sale of property - whether profits derived from the sale of the property assessable to profits tax - intention at the time of acquisition - change of the intention of purchase - ability to carry out intention - onus of proof - s 68(4) of the Inland Revenue Ordinance ('IRO') - application to re-open hearing - finality to evidence - accounting treatment - whether purchase and sale of the subject property within short time span and sale as cofirmor indicative of trading intention  

D112/00 Download D112/00 (DOC) - English Download D112/00 (PDF) - English

understatement of income - whether sufficient business record - s 51C of the Inland Revenue Ordinance  

D50/00 Download D50/00 (DOC) - English Download D50/00 (PDF) - English

whether profits from the sale of a property assessable to profits tax - whether the sale of a property was a sale of capital asset or trading stock - testing the taxpayers' assertion against the surrounding circumstances - s 68(4) of the Inland Revenue Ordinance ('IRO')  

D97/00 Download D97/00 (DOC) - English Download D97/00 (PDF) - English
SALARIES TAX    

allowable deductions - expenses of self-education - s 12(1)(c) of the Inland Revenue Ordinance ('IRO')  

D99/00 Download D99/00 (DOC) - English Download D99/00 (PDF) - English

appeal - extension of time - merits - home loan interest deduction - ss 26E(9), 26E(3)(a), 64(4), 66 and 68(4) of the Inland Revenue Ordinance ('IRO') - ss 19 and 71(1)(b) of the Interpretation and General Clauses Ordinance, Chapter 1  

D106/00 Download D106/00 (DOC) - English Download D106/00 (PDF) - English

dependent parent allowance - other claimants for the allowance - re-open assessment - s(s) 33(3)(c), 60 and 70A of the Inland Revenue Ordinance ('IRO') - additional assessment  

D100/00 Download D100/00 (DOC) - English Download D100/00 (PDF) - English

income received as consultant fees - whether income derived from an 'office or employment of profit' or income for a business - ss 8 and 16 of the Inland Revenue Ordinance ('IRO')  

D110/00 Download D110/00 (DOC) - English Download D110/00 (PDF) - English

salary income - rental value of place of residence provided by employer - the existence of landlord and tenant relationship - ss 8(1), 9(1), 9(1A), 9(2), 61 and 68(4) of the Inland Revenue Ordinance ('IRO')  

D105/00 Download D105/00 (DOC) - English Download D105/00 (PDF) - English

statutory meaning of 'expenses of self-education' - interest on fees must have been paid by the taxpayer not merely incurred - ss 12(6)(c) and 68(9) of the Inland Revenue Ordinance ('IRO')  

D103/00 Download D103/00 (DOC) - English Download D103/00 (PDF) - English

taxpayer providing services outside Hong Kong - whether salary derived from a source in Hong Kong - whether exempt from salaries tax - burden on the taxpayer to prove that the assessment is incorrect - ss 8(1), 8(1A)(b), 8(1B) and 64(8) of the Inland Revenue Ordinance ('IRO')  

D119/00 Download D119/00 (DOC) - English Download D119/00 (PDF) - English

taxpayer providing services outside Hong Kong - working for Hong Kong company with subsidiary in China - whether salary derived from a source in Hong Kong - whether exempt from salaries tax - ss 8(1), 8(1A)(b) and 8(1B) of the Inland Revenue Ordinance ('IRO')  

D128/00 Download D128/00 (DOC) - English Download D128/00 (PDF) - English

whether taxpayer entitled to claim deductions for expenses allegedly incurred in the course of the employment - whether 'prevented' from giving the requisite notice of appeal - s 66(1) of the Inland Revenue Ordinance ('IRO')  

D98/00 Download D98/00 (DOC) - English Download D98/00 (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 31.5.2001), please click here.

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