Volume 24 Third Supplement

application to state a case – a proper question of law – s 69 of the Inland Revenue Ordinance (‘IRO’) – ‘qualitative’ aspect that any proposed question of law must satisfy

employer’s return – charitable body – ss 2(1), 52, 59(3), 68(4), 68(8)(a), 68(9), 82A(1), 82B(2), 82B(3) and 88 of the Inland Revenue Ordinance (‘IRO’); ss 106, 107 and 108 of the Basic Law.  [Decision in Chinese]

salaries tax – income understated – whether additional tax imposed was appropriate – ss 68(9), 82A and 82B(3) of the Inland Revenue Ordinance (‘IRO’)

allowable deduction – mortgage interests – ss 42(1) and 68(4) of Inland Revenue Ordinance (‘IRO’)

assessable profits – deductions – consultancy agreement – artificial transaction – whether consultancy agreement has any commercial reality – ss 16(1) and 61 of the Inland Revenue Ordinance (‘IRO’)

deduction of company’s capital expenditure on fixed assets and its allowances – whether the nature was consumable goods – s 66(3) of the Inland Revenue Ordinance (‘IRO’) – evidential requirement to repudiate taxpayer’s own finance report and tax assessment report. [Decision in Chinese]

trading stock or capital asset – ss 2, 14(1) and 68(4) of the Inland Revenue Ordinance (‘IRO’)

gain by the exercise of a right to acquire shares – ss 9(1)(d), 9(4) and 9(5) of the Inland Revenue Ordinance (‘IRO’). [Decision in Chinese]

statutory time limit to lodge an appeal within 1 month after transmission of determination – notice of appeal filed 5 weeks out of time – whether time for filing notice of appeal be extended – whether Taxpayer prevented by illness or absence from Hong Kong or other reasonable cause from giving notice of appeal within time limit – ss 66(1)(a) and 66(1A) of the Inland Revenue Ordinance (‘IRO’)

unilaterally declared hearing cancelled and failed to attend hearing – ss 68(2B) and 68(2D) of the Inland Revenue Ordinance (‘IRO’).  [Decision in Chinese]

whether services in connection with employment rendered outside Hong Kong – ss 8(1), 8(1A), 8(1B) and 68(4) of the Inland Revenue Ordinance (‘IRO’)

whether the appellant’s source of income arising in or derived from Hong Kong – meaning of ‘60 days’ under s 8(1B) – whether necessary to render all services in connection with employment outside Hong Kong – ss 8(1A)(b)(ii) and 8(1B) of the Inland Revenue Ordinance (‘IRO’). [Decision in Chinese]