The Board of Review (Inland Revenue Ordinance) (hereinafter referred to as the Board) is an independent statutory body constituted since 1947 under section 65 of the Inland Revenue Ordinance (Cap 112) (hereinafter referred to as the IRO) to determine tax appeals. The law provides that the Board shall consist of a chairman and ten deputy chairmen, who shall be persons with legal training and experience, and not more than 150 other members, all of whom shall be appointed by the Chief Executive. At present, the Board is composed of one chairman, seven deputy chairmen and 103 members.

Any person (hereinafter referred to as the appellant) may lodge an appeal by giving notice of appeal in writing to the clerk to the Board (hereinafter referred to as the clerk) under the following circumstances :-

A panel with at least three members, one of whom shall always be either the chairman or a deputy chairman, is formed to determine a tax appeal. Decision is made on the basis of a majority of votes, and in the case of an equality of votes the chairman or deputy chairman shall have a second or casting vote.

On receipt of a notice of appeal, the clerk to the Board shall fix a time for the hearing of the appeal and give 14 clear days' notice to the appellant and the Commissioner. At any time before the hearing of an appeal, the appellant may withdraw the appeal by notice in writing addressed to the clerk; or the appellant and the Commissioner may reach a settlement on the amount at which the appellant is liable to be assessed.

An appellant shall attend the meeting of the Board at which the appeal is heard in person or by an authorised representative. Notwithstanding the above, the Board may, if satisfied that an appellant will be or is outside Hong Kong on the date fixed for the hearing of the appeal and is unlikely to be in Hong Kong within such period thereafter as the Board considers reasonable, on the appellant's written application received by the clerk at least 7 days before the hearing date, proceed to hear the appeal in the absence of the appellant or his authorised representative. In such case, the Board may consider the written submissions as the appellant may submit to the Board.

All appeals shall be heard in camera. The onus of proving that the assessment appealed against is excessive or incorrect shall be on the appellant. He should therefore ensure that he has available at the hearing all witnesses he intends to call and all documents on which he places reliance in support of his appeal. In order to avoid any adjournment of the appeal, all documents should be lodged with the Board with copies to the Commissioner no less than 14 days before the scheduled hearing date.

An appellant is usually given a choice at the hearing of either making an unsworn statement or alternatively giving evidence on oath in support of this appeal. The appellant will not normally be cross-examined if the former option is adopted but will be cross examined by representative of the Commissioner should the latter option be chosen. In deciding which of the 2 courses to adopt, the appellant should bear in mind that the onus of proving that the assessment appealed against is excessive or incorrect rests on him. The Board in general will attach greater weight to evidence tested by the process of cross-examination.

After hearing the appeal, the Board shall confirm, reduce, increase or annul the assessment appealed against or may remit the case to the Commissioner for re-assessment. Where the Board does not reduce or annul such assessment, the Board may order the appellant to pay as costs of the Board a sum not exceeding $5,000 which shall be added to the tax charged. Such order is in the discretion of the Board and is a material consideration in the exercise of such discretion if the proceeding has been conducted frivolously, vexatiously or an abuse of process.