Volume 38
Publication Date: Jun 2024
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DIGEST OF CASES REPORTED
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| Decision No. | Download | |
|---|---|---|
| APPEAL | ||
| Profits tax – whether or not the disposed of subject units as capital assets or as trading stocks – apportionment of the purchase and purchase transaction costs of the Property – Board’s function on hearing – assertions and submissions not supported by undisputed contemporaneous documents – self-serving statements or minutes – adverse inferences drawn in the absence of material evidence – whether or not benefit of the doubt and assumptions should be made in its favour in the absence of evidence – burden to prove that the Property was acquired as a capital asset - flexible intention – intention of a company inferred and defined from the acts and intentions of its controlling minds – insignificance of the property yielded rental income – Whether the offers were unsolicited or not is a significant factor – The Board’s duty to consider the valuation | D30/22 |
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| PROFITS TAX | ||
| Profits tax – Source of profits – whether profits wholly derived outside Hong Kong – no witness called to explain documents – late submission of documents – whether burden of proof discharged – sections 2, 14 and 68 the Inland Revenue Ordinance (‘IRO’) | D27/22 |
|
| whether or not the sale of the Property amount to an adventure in the nature of trade – the intention at the time of acquisition of the property – stated intention has to be tested against objective facts and circumstances – whether or not the taxpayer’s evidence unchallenged by the Revenue could be taken as accepted by the Revenue as the fact – the Appellant’s burden of proof that the Property was purchased as a capital asset and the intention was to hold it on a long term basis – quick offer for sale and short holding period point to an intention to trade – whether or not leasing out a property for rental income follow that the Property must be held for long-term investment. | D29/22 |
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| SALARIES TAX | ||
| salary and leave pay for the garden leave period in the separation agreement – whether subject to Salaries Tax – sections 8(1), 9(1), 9(1)(a), 9(1)(b), 9(1)(c), 9(1A), 9(2), 68(9) of the Inland Revenue Ordinance (the ‘IRO’) | D26/22 |
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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 31.8.2023), please click here.