Volume 29 Third Supplement

section 69(1) of the Inland Revenue Ordinance (‘IRO’).

language of proceedings – appellant preferring ‘Cantonese’ as language of proceedings – whether the Board bound to adopt ‘Cantonese’ as language of proceedings – sections 2, 3(1) and 5 of the Official Languages Ordinance (Chapter 5) (‘OLO’).

appellant obtaining loan to finance working capital and property upgrades – interest expense arising from loan – whether loan interest deductible – sections 16(1)(a), 17(1)(b), 25, 61 and 61A of the Inland Revenue Ordinance (Chapter 112) (‘IRO’).

engaging in a trade – whether the Appellant held property as a capital asset or for a trade – section 14(1) of the Inland Revenue Ordinance (‘IRO’).

expenses – whether bona fide incurred in the production of chargeable profits – whether sole or dominant purpose to obtain a tax benefit – late amendment to grounds of appeal – sections 16, 61A, 66(3) and 68(4) of the Inland Revenue Ordinance (‘IRO’).

pre-condition to state a case – proper question of law should be specified by the applicant – the Board had the responsibility to decline to state a case if the question of law was not proper for the court to consider.  [Decision in Chinese]

whether gains arising from the disposal of capital asset – sections 2(1), 14(1), 66(3), 68(4) and 68(9) of the Inland Revenue Ordinance.  [Decision in Chinese]