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Volume 35 Second Supplement

Publication Date: Jun 2021

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DIGEST OF CASES REPORTED

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  Decision No. Download
PROFITS TAX    
additional assessment – source of profits – whether Appellant’s business in Hong Kong and the factory in the Mainland was the same entity – whether 50% of the profits could be deemed to be generated offshore – deductions – specified capital expenditure – excluded fixed asset or prescribed fixed asset – lease – depreciation allowance – annual allowance for commercial building – sections 2, 14, 16, 16G, 17, 18F, 33A, 34, 37A, 39B, 39E, 68(4), 68(9) of the Inland Revenue Ordinance (‘the Ordinance’) [Decision in Chinese] D18/19 Download D18/19 (DOC) TC - Traditional Chinese Download D18/19 (PDF) TC - Traditional Chinese
correction of profits tax return under section 70A of the Inland Revenue Ordinance – ‘Profits Tax Return – Fair Value Accounting’ section of the Department’s website – whether the loss is deductible from the taxpayer’s assessable profits – whether such ‘error’ in the tax computation was within the meaning of section 70A of the Ordinance D24/19 Download D24/19 (DOC) EN - English Download D24/19 (PDF) EN - English
sale of residential property – intention at the time of acquisition – onus of proof on the appellant – sections 14(1) and 68(4) of the Inland Revenue Ordinance [Decision in Chinese] D20/19 Download D20/19 (DOC) TC - Traditional Chinese Download D20/19 (PDF) TC - Traditional Chinese
special annual bonus – whether deductible for the purpose of profits tax – whether incurred ‘in the production of profits’ – whether preferential dividends – sections 16, 17, 68(4), (8) & (9) of and Part 1 of Schedule 5 to the Inland Revenue Ordinance (Chapter 112) (‘IRO’) D19/19 Download D19/19 (DOC) EN - English Download D19/19 (PDF) EN - English
SALARIES TAX    
deduction of expenses under salaries tax – ‘wholly, exclusively and necessarily’ incurred in the production of the assessable income – sections 12(1)(a), 66, 68(4) of the Inland Revenue Ordinance (the ‘IRO’) D23/19 Download D23/19 (DOC) EN - English Download D23/19 (PDF) EN - English
single parent allowance – whether the person was married and not living apart from his or her spouse at any time during the year of assessment – whether appellant liable to pay costs – sections 32(1), (2) and 68(9) of the Inland Revenue Ordinance (Chapter 112) (‘IRO’) [Decision in Chinese] D22/19 Download D22/19 (DOC) TC - Traditional Chinese Download D22/19 (PDF) TC - Traditional Chinese
whether income arising in or derived from Hong Kong – factors to be taken into account to identify the locality of the source of income – whether exempted from charge to salaries tax as a crew of an aircraft – section 8 of the Inland Revenue Ordinance (‘the Ordinance’) D17/19 Download D17/19 (DOC) EN - English Download D17/19 (PDF) EN - English
whether services in connection with employment rendered outside Hong Kong– sections 8(1), 8(1A), 8(1B) and 68(4) of the Inland Revenue Ordinance D21/19 Download D21/19 (DOC) EN - English Download D21/19 (PDF) EN - English

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 28.2.2021), please click here.