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Volume 16

Publication Date: Oct 2001

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DIGEST OF CASES REPORTED

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  Decision No. Download
PENALTY TAX    

incorrect tax return - Practice Notes 'Locality of Profits'  

D17/01 Download D17/01 (DOC) - English Download D17/01 (PDF) - English

late filing of returns - whether an application for extension of time is an excuse - whether payment of tax under the First Estimated Assessment a mitigating factor - whether quantum of penalty excessive -unintentional - ss 68(9) and 82A of the Inland Revenue Ordinance ('IRO') - frivolous appeal - order to pay cost  

D134/00 Download D134/00 (DOC) - English Download D134/00 (PDF) - English

late filing of tax return - reasonable excuse - ss 51(1) and 82A of the Inland Revenue Ordinance ('IRO')  

D15/01 Download D15/01 (DOC) - English Download D15/01 (PDF) - English

onus of proof on taxpayer on appeal - positive evidence - negative evidence - what relevant factors in assessing the appropriate penalty - imposition of additional assessments should be done in a consistent manner - additional assessments found to be excessive - the Board adjusted the penalty/additional assessments to the rate of 100% of tax undercharged - ss 68(4), 82A and 82B of the Inland Revenue Ordinance ('IRO'). [Decision in Chinese]  

D154/00 Download D154/00 (DOC) - Traditional Chinese Download D154/00 (PDF) - Traditional Chinese

submission of incorrect tax returns without reasonable excuse - grossly understated assessable profits in tax returns for several years of assessment - penalties imposed range from 101.14% to 111.15% of the tax undercharged - s 82A of the Inland Revenue Ordinance ('IRO')  

D12/01 Download D12/01 (DOC) - English Download D12/01 (PDF) - English

whether reasonable excuse - whether excessive  

D10/01 Download D10/01 (DOC) - English Download D10/01 (PDF) - English
PERSONAL ASSESSMENT    

personal assessment on his total income - s 42(1) of the Inland Revenue Ordinance ('IRO')  

D4/01 Download D4/01 (DOC) - English Download D4/01 (PDF) - English
PROFITS TAX    

acquisition and proposed development of real property by 50:50 joint venture between two groups of companies - transfer of 50% shareholding in joint venture vehicle of offshore company acquired by one joint venture partner - sale of offshore company to subsidiary of other group within short period of time - whether transfer of offshore company an adventure in the nature of trade - intention at time of purchase - whether profit earned - Sharkey v Wernher principle - ss 14 and 68(4) of the Inland Revenue Ordinance ('IRO')  

D142/00 Download D142/00 (DOC) - English Download D142/00 (PDF) - English

lodging appeal against Commissioner's determination - taxpayer seeking extension of time to lodge - taxpayer failing to give reasons for failure to lodge - absent from Hong Kong - no automatic right of extension - burden on taxpayer - s 66(1A) of the Inland Revenue Ordinance ('IRO')  

D19/01 Download D19/01 (DOC) - English Download D19/01 (PDF) - English

whether diminution in value of properties - whether deductible  

D8/01 Download D8/01 (DOC) - English Download D8/01 (PDF) - English

whether profits from the sale of a property assessable to profits tax - onus of proof resting upon taxpayers to displace the inference of trade arising from the rapid succession of purchase and sale - gross abuse of the appeal mechanism - s 68(4) and 68(9) of the Inland Revenue Ordinance ('IRO')  

D148/00 Download D148/00 (DOC) - English Download D148/00 (PDF) - English
SALARIES TAX    

allowable deductions - membership fee - s 12(1) of the Inland Revenue Ordinance ('IRO')  

D11/01 Download D11/01 (DOC) - English Download D11/01 (PDF) - English

deductions - home loan interest - premium on Hong Kong Housing Authority flat - s 26E of the Inland Revenue Ordinance ('IRO')  

D2/01 Download D2/01 (DOC) - English Download D2/01 (PDF) - English

exemption - whether severance payment/ long service payment - whether entitled to 10% tax refund under the Tax Exemption (1997 Tax Year) Order - ss 8(1), 9(1), 68(4) and 87 of the Inland Revenue Ordinance ('IRO')  

D151/00 Download D151/00 (DOC) - English Download D151/00 (PDF) - English

housing benefits - whether should be classified as a refund of rent or an allowance - s 9(1)(a) and 9(1A)(a) of the Inland Revenue Ordinance ('IRO')  

D149/00 Download D149/00 (DOC) - English Download D149/00 (PDF) - English

married person's allowance - child allowance - s 29 of the Inland Revenue Ordinance ('IRO') - whether the taxpayer had the predominant care of his two sons  

D144/00 Download D144/00 (DOC) - English Download D144/00 (PDF) - English

mortgage loan - allowable home loan interest deduction - basis of calculation of deduction- s 26E of the Inland Revenue Ordinance ('IRO')  

D20/01 Download D20/01 (DOC) - English Download D20/01 (PDF) - English

net assessable income - deduction - fees incurred for Chinese opera course by a police constable - ss 12(1), (6) and 70 of the Inland Revenue Ordinance ('IRO')  

D138/00 Download D138/00 (DOC) - English Download D138/00 (PDF) - English

notice of appeal - extension of time - discretion - s 66(1A) of the Inland Revenue Ordinance ('IRO')  

D139/00 Download D139/00 (DOC) - English Download D139/00 (PDF) - English

recognized retirement scheme - s 9(1)(ab)(i) of the Inland Revenue Ordinance ('IRO')  

D9/01 Download D9/01 (DOC) - English Download D9/01 (PDF) - English

whether certain amounts in dispute are rent, which is deductible as opposed to salary, which is taxable in full - retrospectively alter the nature of the income accured by, and paid to, the taxpayer is never allowed - whether 'prevented' from giving the requisite notice of appeal - ss 8(1), 9(1)(a), 66(1) and 66(1A) of the Inland Revenue Ordinance ('IRO')  

D140/00 Download D140/00 (DOC) - English Download D140/00 (PDF) - English

whether gratuity  

D131/00 Download D131/00 (DOC) - English Download D131/00 (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 31.8.2001), please click here.

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