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Volume 35

Publication Date: Feb 2021

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DIGEST OF CASES REPORTED

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  Decision No. Download
APPEAL OUT OF TIME    

notice of appeal – on what basis a letter from the Appellant may constitute a Notice of Appeal – whether time limit for appeal ought to be extended for being absent from Hong Kong – joint tenants of landed properties would need time to discuss and agreed on joint approach – Inland Revenue Ordinance (‘the Ordinance’) section 66

D1/19 Download D1/19 (DOC) EN - English Download D1/19 (PDF) EN - English
COSTS    

frivolous and vexatious – section 68(9) of the Inland Revenue Ordinance

D6/19 Download D6/19 (DOC) EN - English Download D6/19 (PDF) EN - English
PENALTY TAX    

incorrect tax return – whether the appeal is late appeal – section 58(3) and 82B(1)(a) of the IRO – actual service of the notice of appeal to the Clerk – discretion to extend time – reasonable excuse under section 82A(1) of the IRO – personal duty of every taxpayer to file a true and correct tax return – receipt and accrual of income and the total amount of income in a year of assessment were factual matters within the personal knowledge of the taxpayer – norm for additional assessment of penalty tax in respect of an incorrect return due to a genuine mistake is 10% of the tax

D4/19 Download D4/19 (DOC) EN - English Download D4/19 (PDF) EN - English
PROFITS TAX    

appeal out of time – sections 66(1)(a), 66(1A) of the Inland Revenue Ordinance (‘IRO’)  [Decision in Chinese]

D3/19 Download D3/19 (DOC) TC - Traditional Chinese Download D3/19 (PDF) TC - Traditional Chinese

deduction of the sales including depreciation charged on assets owned by the Mainland Factories

D8/19 Download D8/19 (DOC) EN - English Download D8/19 (PDF) EN - English

royalty payment – whether deductible – whether incurred for the production of profits – trade mark licence agreement – whether artificial transaction – whether sole or dominant purpose to obtain a tax benefit – offshore company - management and control of trademarks thru a Hong Kong agent – whether carrying on business in Hong Kong – Sections 14, 15, 16, 17, 21A, 61, 61A, 68(4) of IRO

D7/19 Download D7/19 (DOC) EN - English Download D7/19 (PDF) EN - English

source – agreement on facts – sections 2, 14, 16, 66, 68, 68AA, 70 and 70A of the Inland Revenue Ordinance

D6/19 Download D6/19 (DOC) EN - English Download D6/19 (PDF) EN - English

whether amount of additional tax excessive – consultancy fee paid to a related company for purpose of the production of chargeable profits – payment pursuant to an agreement – whether the agreement entered on arm’s length basis and bona fide basis – sections 16(1), 17, 17(1), 17(1)(b), 61, 68(4), 68(9) of the Inland Revenue Ordinance (‘IRO’)

D5/19 Download D5/19 (DOC) EN - English Download D5/19 (PDF) EN - English

whether sale of landed properties amounted to trade – whether the Appellants had an intention to trade when acquiring the landed properties – section 14 of the Ordinance

D1/19 Download D1/19 (DOC) EN - English Download D1/19 (PDF) EN - English
SALARIES TAX    

share incentive plan – appellant employed by two different companies – first employment outside Hong Kong – both companies under the same group – shares awarded under first employment held by nominee until end of retention period – whether value of shares and dividends chargeable to salaries tax in Hong Kong – whether share benefits included in calculation of value of residence provided by employer – sections 8(1), 9, 11B, 11C, 11D, 68(4) of the Inland Revenue Ordinance (‘IRO’)

D2/19 Download D2/19 (DOC) EN - English Download D2/19 (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 31.8.2020), please click here.