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Volume 21

Publication Date: Oct 2006

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DIGEST OF CASES REPORTED

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  Decision No. Download
PENALTY TAX    

failing to report income in tax return — s 82A of the Inland Revenue Ordinance ("IRO") — whether or not to impose penalty tax under the circumstances in which there was no fraud and the failure to report was an unintentional mistake. [Decision in Chinese]

D71/05 Download D71/05 (DOC) - Traditional Chinese Download D71/05 (PDF) - Traditional Chinese

filing of an incorrect return — imposition of additional tax under s 82A of the IRO — ss 64(3) & 70 of the Inland Revenue Ordinance ("IRO") — compromise reached between taxpayer and IRD as to quantum of assessable income — whether final and conclusive

D78/05 Download D78/05 (DOC) - English Download D78/05 (PDF) - English

incorrect tax return — reasonable excuse — excessive assessment — co-operation — Inland Revenue Ordinance ("IRO") ss 70 and 82

D4/06 Download D4/06 (DOC) - English Download D4/06 (PDF) - English
PROFITS TAX    

onus wholly on the appellant to show the assessment excessive or incorrect — ss 16(1), 17(1)(a) and 68(4) of the Inland Revenue Ordinance ("IRO").  

D1/06 Download D1/06 (DOC) - English Download D1/06 (PDF) - English

practice & procedure —language of proceedings — whether proceedings ought to be conducted in Chinese or English — bias — recusal application — s 68( 1A )(a) of the Inland Revenue Ordinance ("IRO") — whether appeal should be dismissed or withdrawn  

D75/05 Download D75/05 (DOC) - English Download D75/05 (PDF) - English

sale of rebuilt residential property — intention at the time of rebuilding — onus of proof on the appellant — ss 14(1) and 68(4) of the Inland Revenue Ordinance ("IRO").  [Decision in Chinese]  

D74/05 Download D74/05 (DOC) - Traditional Chinese Download D74/05 (PDF) - Traditional Chinese

sources of the trading profits and commission income — whether the "profits arising in or derived from" Hong Kong - claim for deduction of expenses related to the dismissal of a director — whether the expenditure incurred "in the production of profits" — the validity of additional assessments - whether the additional assessments involve "re-opening of any matter which has been determined on objection or appeal for the year" — application for leave to rely on further grounds — whether the proposed amendments are sufficiently intelligible with adequate particularity - ss 14(1), 16(1), 50, 60, 64(3)&(4), 66(3), 68(4), 68(9) and 70 of the Inland Revenue Ordinance ("IRO").  

D10/06 Download D10/06 (DOC) - English Download D10/06 (PDF) - English

whether or not the sale of small house is a trade activity — whether or not the stated intention was realistic and realizable — badges of trade — the time to have the intention to trade to ascertain the market value of the small house as the cost to calculate the profits. [Decision in Chinese]  

D73/05 Download D73/05 (DOC) - Traditional Chinese Download D73/05 (PDF) - Traditional Chinese
SALARIES TAX    

cash allowance or refund of rent — Inland Revenue Ordinance ("IRO") ss 9(1)(a) and 9( 1A )(a)

D5/06 Download D5/06 (DOC) - English Download D5/06 (PDF) - English

claims for the deduction of home loan interest — delay of the Inland Revenue Department to notify the taxpayer — ss 26E and 60(1) of the Inland Revenue Ordinance ("IRO") — whether or not a beneficial owner of an interest in the property in question can claim for home loan interest

D70/05 Download D70/05 (DOC) - English Download D70/05 (PDF) - English

home loan interest — a distinction between legal ownership and beneficial ownership - amount of deduction of mortgage interest paid in respect of a property held by the spouse of a joint-tenant - s 26E(1) of the Inland Revenue Ordinance ("the IRO")  

D11/06 Download D11/06 (DOC) - English Download D11/06 (PDF) - English

home loan interest deduction — beneficial owner as opposed to legal (registered) owner — ss 2 and 26E of the Inland Revenue Ordinance ("IRO")  

D80/05 Download D80/05 (DOC) - English Download D80/05 (PDF) - English

home loan interest deduction — ss 26E & 26F of the Inland Revenue Ordinance ("IRO") — whether loan of money applied wholly or in part for the acquisition of a dwelling — whether appellant discharged burden of showing assessments were excessive  

D76/05 Download D76/05 (DOC) - English Download D76/05 (PDF) - English

home loan interest deduction — ss 26E & 26F of the Inland Revenue Ordinance ("IRO") — whether loan of money applied wholly or in part for the acquisition of a dwelling — whether appellant discharged burden of showing assessments were excessive  

D77/05 Download D77/05 (DOC) - English Download D77/05 (PDF) - English

home loan interest deductions — ss 26E, 26F , 60 and 68(4) of the Inland Revenue Ordinance ("IRO")  

D8/06 Download D8/06 (DOC) - English Download D8/06 (PDF) - English

home loan interest deductions  

D9/06 Download D9/06 (DOC) - English Download D9/06 (PDF) - English

income from an employment of profit in Hong Kong — exclusion where services all rendered and performed outside Hong Kong — s 8( 1A )(b) of the Inland Revenue Ordinance ("IRO")  

D79/05 Download D79/05 (DOC) - English Download D79/05 (PDF) - English

refund of rent or financial assistance — intention of making payment — Inland Revenue Ordinance ("IRO") ss 9(1)(a) and 9( 1A )(ii)

D3/06 Download D3/06 (DOC) - English Download D3/06 (PDF) - English

services rendered ordinarily outside Hong Kong except on one occasion — whether exemption — Inland Revenue Ordinance ("IRO") s 8( 1A )  

D2/06 Download D2/06 (DOC) - English Download D2/06 (PDF) - English

time apportionment for employment outside Hong Kong — double taxation — ss 8(1)(a), 8( 1A )(a) and 68(8) of the Inland Revenue Ordinance ("IRO")  

D6/06 Download D6/06 (DOC) - English Download D6/06 (PDF) - English

whether or not the sum of money is severance payment which is exempted from salaries tax — the nature of the sum of money — ss 6(2)(c), 32A (1)(c) and 32B of the Employment Ordinance — whether or not live difficulties can be a reason to have exemption from salaries tax. [Decision in Chinese]

D72/05 Download D72/05 (DOC) - Traditional Chinese Download D72/05 (PDF) - Traditional Chinese

whether the assessment appealed against is excessive or incorrect — the onus of proof is on the appellant - s 68(4), (8)(a) of the Inland Revenue Ordinance ("the IRO")  

D12/06 Download D12/06 (DOC) - English Download D12/06 (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 31.8.2006), please click here.

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