Volume 21 Third Supplement
Publication Date: Jul 2007
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DIGEST OF CASES REPORTED
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Decision No. |
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CASE STATED |
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application for stating a case — proper question of law |
D63/06 |
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PENALTY TAX |
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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 |
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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 |
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PROFITS TAX |
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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 |
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property — investment or trade |
D53/06 |
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source of income — garment manufacturing — procurement fees — whether artificial and fictitious — whether deductible |
D54/06 |
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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 |
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PROPERTY TAX |
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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 |
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rental income [Decision in Chinese] |
D59/06 |
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SALARIES TAX |
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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 |
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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 |
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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 |
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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 |
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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 |
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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 |
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practice and procedure — appeal — absence — s 68 of Inland Revenue Ordinance ("IRO") |
D64/06 |
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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 |
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whether income arising or derived from Hong Kong |
D60/06 |
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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 |
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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 |
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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 31.5.2007), please click here.