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Volume 21 Third Supplement

Publication Date: Jul 2007

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DIGEST OF CASES REPORTED

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  Decision No. Download
CASE STATED    

application for stating a case — proper question of law

D63/06 Download D63/06 (DOC) - English Download D63/06 (PDF) - English
PENALTY TAX    

delay in filing the tax return — ss 68, 82A and 82B(3) of the Inland Revenue Ordinance ("IRO") — whether the taxpayer has any "reasonable excuse" for the delay — whether proof of recklessness, or deliberate or persistent default are required — burden on the taxpayer to prove — whether the Board should act on bare allegations — directors of the taxpayer were away from Hong Kong cannot amount to a reasonable excuse - duty of taxpayer to comply with time limit for filing its tax return — approach to consider overall circumstances to assess the amount of additional tax — discretion to order costs is not confined to appeals which are obviously unsustainable — whether the conduct of the appeal was frivolous and vexatious  

D57/06 Download D57/06 (DOC) - English Download D57/06 (PDF) - English

whether or not the taxpayer had any reasonable excuse for omitting or understating his income — ss 68(4), 80(2), 82(1) and 82A of the Inland Revenue Ordinance ("IRO") — taxpayer's duty to report the correct amount of income — whether or not carelessness is an excuse for submitting an incorrect return — whether or not the assessment has exceeded the amount for which the taxpayer is liable — duty of every taxpayer to pay the correct amount of tax — whether or not lack of intention to evade tax is a mitigating factor  

D56/06 Download D56/06 (DOC) - English Download D56/06 (PDF) - English
PROFITS TAX    

assessment and additional assessment of profits — royalty — bad debts — salaries — entertainment fees — listing fees — professional fees — ss 16(1)(d) and 68(4) of Inland Revenue Ordinance ("IRO") [Decision in Chinese]

D73/06 Download D73/06 (DOC) - Traditional Chinese Download D73/06 (PDF) - Traditional Chinese

property — investment or trade

D53/06 Download D53/06 (DOC) - English Download D53/06 (PDF) - English

source of income — garment manufacturing — procurement fees — whether artificial and fictitious — whether deductible

D54/06 Download D54/06 (DOC) - English Download D54/06 (PDF) - English

whether the selling of the property and the gain arising therefrom falls within s 14 of the Inland Revenue Ordinance ("IRO") — whether or not this is a sale of a capital asset — ss 2, 14(1) and 68(4) of the IRO — whether or not the taxpayer had an intention to trade when it acquired the subject premises — the taxpayer's intention has to be ascertained objectively by reference to the whole of the surrounding circumstances — the taxpayer's stated intention cannot be decisive — burden of proving lies on the taxpayer — necessary to look at the intentions and the acts of controlling minds of the company

D58/06 Download D58/06 (DOC) - English Download D58/06 (PDF) - English
PROPERTY TAX    

rates paid for non-rental period — burden of proof — ss 5(1), 5( 1A ), 5B, 59, 60 and 68(4) of the Inland Revenue Ordinance ("IRO")  

D72/06 Download D72/06 (DOC) - English Download D72/06 (PDF) - English

rental income [Decision in Chinese]  

D59/06 Download D59/06 (DOC) - Traditional Chinese Download D59/06 (PDF) - Traditional Chinese
SALARIES TAX    

appeal out of time — whether or not there was reasonable cause preventing the taxpayer from giving notice of appeal within time — home loan interest deduction — whether loan from developer a "home loan" — ss 26E(9), 66(1), 66( 1A ) of the Inland Revenue Ordinance ("IRO")  

D67/06 Download D67/06 (DOC) - English Download D67/06 (PDF) - English

apportionment of assessable income from settlement award — relate back — additional assessment of accrued income when received — ss 11B, 11D and 68(4) of the Inland Revenue Ordinance ("IRO") — s 10A of the Employment Ordinance Cap 57 — s 39(3) of the Labour Tribunal Ordinance Cap 25 [Decision in Chinese]  

D69/06 Download D69/06 (DOC) - Traditional Chinese Download D69/06 (PDF) - Traditional Chinese

consideration of termination of employment agreement — ss 8(1), 9(1)(a), 52(5), 68(2D) and 68(4) of the Inland Revenue Ordinance ("IRO")

D71/06 Download D71/06 (DOC) - English Download D71/06 (PDF) - English

deductions — whether reference books and CDs purchased by teacher for self study, improving own teaching quality and for lending to students deductible "expenses" - ss 12(1)(a), 12(1)(b), 12(2), 12(1)(e), 12(6) and 68(4) of the Inland Revenue Ordinance ("IRO"). [Decision in Chinese]  

D61/06 Download D61/06 (DOC) - Traditional Chinese Download D61/06 (PDF) - Traditional Chinese

gain realized by exercise of share option — date of assessment — ss 9(1)(d) and 9(4) of the Inland Revenue Ordinance ("IRO")

D66/06 Download D66/06 (DOC) - English Download D66/06 (PDF) - English

notice of appeal filed without Determination — whether a valid notice of appeal — Determination filed out of time — whether extension of time applicable to filing of Determination — consideration for granting of extension of time — ss 66(1)(a) and 66( 1A ) of the Inland Revenue Ordinance ("IRO")  

D62/06 Download D62/06 (DOC) - English Download D62/06 (PDF) - English

practice and procedure — appeal — absence — s 68 of Inland Revenue Ordinance ("IRO")

D64/06 Download D64/06 (DOC) - English Download D64/06 (PDF) - English

where source of income was located — totality of facts test — whether income should be fully assessed or partly assessed on a time apportionment basis — ss 8(1)(a), 8( 1A )(a) of the Inland Revenue Ordinance ("IRO")  

D68/06 Download D68/06 (DOC) - English Download D68/06 (PDF) - English

whether income arising or derived from Hong Kong

D60/06 Download D60/06 (DOC) - English Download D60/06 (PDF) - English

whether or not expenses and outgoings should be deducted — s 68(4) of the Inland Revenue Ordinance ("IRO") — whether or not the taxpayer has incurred the alleged expenses and outgoing

D55/06 Download D55/06 (DOC) - English Download D55/06 (PDF) - English

whether value of shares assessable income — what amount of value of the shares should be assessed — ss 8(1), 9(1), 11B and 68(4) of Inland Revenue Ordinance ("IRO")

D65/06 Download D65/06 (DOC) - English Download D65/06 (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 31.5.2007), please click here.

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