Volume 16 Third Supplement
Publication Date: Jul 2002
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DIGEST OF CASES REPORTED
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Decision No. |
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PENALTY TAX |
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incorrect salaries tax return - failure to disclose commission from other companies - whether reasonable excuse - ss 51(2) and 82A of the Inland Revenue Ordinance ('IRO') - personal obligation - whether quantum of additional tax excessive |
D103/01 |
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incorrect tax returns - whether reasonable excuse - quantum - mitigation - co-operation |
D90/01 |
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submission of incorrect tax returns without reasonable excuse - imposition of additional assessments at the average rate of 52.6% - standard practice was to use as a starting point penalty equivalent to 100% of the tax underpaid - ss 82A and 82B of the Inland Revenue Ordinance ('IRO') |
D131/01 |
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tax return - omit to report inocme from sale commissions - appellant dishonest - additional tax levied at 100% of the tax undercharged - ss 51(2), 68(8), 82A and 82B of the Inland Revenue Ordinance ('IRO') |
D110/01 |
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PERSONAL ASSESSMENT |
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whether loss sustained from failure to complete the purchase of a property a trading loss - ss 2, 14(1), 42(2)(b) and 68(4) of the Inland Revenue Ordinance ('IRO') |
D117/01 |
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PROFITS TAX |
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deduction for mortgage interest - s 42(1) of the Inland Revenue Ordinance ('IRO') - onus of proof - effect of self-serving assertions un-tested by cross examination |
D96/01 |
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disposal of properties - whether profits derived from the sale of the property assessable to profits tax - intention at the time of acquisition - whether quick disposition is inconsistent with the long term investment intention - onus of proof |
D97/01 |
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properties transferred between closely related companies - whether properties held as agent or on long term basis |
D92/01 |
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property - whether investment or trade |
D91/01 |
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real property - whether the gains arising from the disposal of properties were liable for profits tax - whether expenses should be allowed - ss 2, 14(1), 61, 66(3) and 68(4) of the Inland Revenue Ordinance ('IRO') - costs - frivolous and vexatious and abuse of the process - s 68(9) of the IRO |
D112/01 |
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whether certain sum could be deducted as 'expense' - onus of proof on appeal rests on the appellant - interposition of different companies and the appellant - the test to be applied - identify any commercial realism between different companies - whether the impugned transaction was 'unrealistic from a business point of view' or 'commercially unrealistic' - any comtemporaneous document in support - whether precluded by the Personal Data (Privacy) Ordinance (Chapter 486) ('PD(P)O') from disclosing details of appellant's client(s) - wholly unmeritorious appeal - penalized in costs - s 58(1)(c) and (2) and principle 3 of the PD(P)O - ss 61, 68(4) and 68(9) of the Inland Revenue Ordinance ('IRO') |
D129/01 |
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whether certain sums were deductible as outgoings and expenses - two criteria to be satisfied before deduction is allowed under s 16(1) - firstly, it must be incurred in the production of assessable profits and secondly, it must be incurred during the basis period for the relevant year of assessment - mere compliance with s 16(1) is not sufficient, it must also not be excluded under s 17(1) - ss 16, 17 and 68(4) of the Inland Revenue Ordinance ('IRO') |
D128/01 |
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whether fines can be deducted as outgoings and expenses under s 16 of the Inland Revenue Ordinance ('IRO') - whether the taxpayer requires to show that an item of expenditure or outgoing is 'necessarily' incurred |
D99/01 |
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whether the sale of a property was trading in nature - the circumstances and facts of the case go against the contention of the taxpayer - absence of explanation as to the nature of money deposited into the bank accounts of the taxpayer - the failure of the taxpayer to give evidence on appeal - burden of proof on the taxpayer - appeal was unmeritorious and frivolous - penalized in costs - ss 2(1), 14 and 68(4) of the Inland Revenue Ordinance ('IRO') |
D127/01 |
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whether the sale was trading activity - intention - whether profits assessable to tax - whether the properties are capital assets |
D104/01 |
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SALARIES TAX |
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failure to report gain under share option scheme due to an 'oversight' - additional tax levied at 9.72% of the originally understated and undercharged tax - s 82A of the Inland Revenue Ordinance ('IRO') |
D115/01 |
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home loan interest deduction - property - joint tenant becoming sole owner - when entitled to claim full deduction - s 26E of the Inland Revenue Ordinance ('IRO') |
D94/01 |
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housing allowance - whether income or rent refunds |
D93/01 |
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income accrued was income of a firm - s 68(4) of the Inland Revenue Ordinance ('IRO') |
D118/01 |
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income under agreements - whether income derived from an employment of profit - ss 8, 9A and 68(4) of the Inland Revenue Ordinance ('IRO') |
D108/01 |
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non-attendance at hearing - s 68(2D) and 68(2B) of the Inland Revenue Ordinance ('IRO') - employment - source of income - s 68(4) of the IRO - whether liable to salaries tax - onus of proof |
D101/01 |
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whether assessments excessive. [Decision in Chinese] |
D132/01 |
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whether certain amounts of a loan fall within 'home loan' definition of s 26E of the Inland Revenue Ordinance ('IRO') - 'home loan interest' concession - the meaning of the word 'acquisition' under s 26E(9) of the IRO - ss 26E and 68(4) of the IRO |
D123/01 |
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whether certain amount was 'employment income' - interposition of different companies and the appellant - onus of proof on appeal rests on the appellant - the test to be applied - identify any commercial realism between different companies - whether the impugned transaction was 'unrealistic from a business point of view' or 'commercially unrealistic' - whether the sole or dominant purpose of effecting the interposition was to enable the appellant to obtain a tax benefit - wholly unmeritorious appeal - penalized in costs - ss 9A, 12(1)(a), 17(1)(a), 61, 61A, 68(4) and 68(9) of the Inland Revenue Ordinance ('IRO') |
D130/01 |
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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 31.5.2002), please click here.