Volume 34 Third Supplement

unreasonably wrong accusations – produce irrelevant documents and witnesses

appellant raising loan from bank and transferring to a related company following the Group’s treasury policy – deduction of bank charge and bank loan interest – whether bank charge and bank loan interest incurred in producing profits to which the Appellant was chargeable – whether any real necessity for Appellant to raise facility – whether Appellant illiquid – whether the loan surplus to the Appellant’s requirements – sections 16, 17 and 68 of the Inland Revenue Ordinance (Chapter 112) (‘IRO’)

determination of profits tax assessment – expenses incurred for purpose of the production of profits – properties handling expenses and entertainment expenses – Inland Revenue Ordinance (Chapter 112) sections 16(1), 17(1), 61, 68, 68(4)

import processing – form of transactions – lease of machinery – sections 2, 14, 16(1), 16G, 17(1), 18F, 39B and 39E of the Inland Revenue Ordinance

owner – net assessable value – whether assignment unrealistic and artificial transaction – whether sole or dominant purpose to obtain a tax benefit – deduction of mortgage interest – sections 2, 5, 42(1), 61, 61A, 68(4) and 68(9) of IRO

change the payday – the accumulate income for the tax assessment year – sections 11B and 11D(b) of Inland Revenue Ordinance – risk to bear the legal cost [Decision in Chinese]

sections 9(1)(d) and 9(4) of Inland Revenue Ordinance – relevant time and the amount of the gain from the exercise of the option – tax a notional gain, rather than an actual gain – subscription price in determining the value of share – discount on the value of shares for such pre-emptive rights, and other restrictions on sale – no variation in terms of policy in giving discount across different types of shares

whether income arose or derived from any office or employment of profit – whether ex-gratia payment paid on employee’s resignation was such income – Inland Revenue Ordinance (‘the Ordinance’) section 8

whether salaries tax chargeable on bonus received – whether bonus received after the year of assessment should be included in the assessment for that year of assessment – Inland Revenue Ordinance (‘the Ordinance’) sections 11B, 11C, 11D [Decision in Chinese]