Decision No
 

PENALTY TAX -
 

failure to declare income from two out of three sources of salary - cavalier disregard for complying with obligations to provide a true and complete return - whether penalty tax of 25% excessive in the circumstances - Inland Revenue Ordinance ss 82A and 82B
 

failure by director and employee of company to report chargeability to salaries tax - relevance of commercial restitution in assessing penalty tax - whether penalty tax of 50% excessive in the circumstances - Inland Revenue Ordinance ss 82A and 82B
 

PERSONAL ASSESSMENT -
 

deduction of interest on mortgage loan - whether purpose of loan was to produce rental income - Inland Revenue Ordinance s 42(1) proviso
 

PROFITS TAX -
 

source of profit - travel agent selling outbound tours through its retail outlets in Hong Kong and performing its obligations to its customers predominantly overseas through its employees and land operators - whether land operators agents - Inland Revenue Ordinance s 14
 

trading profit or capital gains - whether intention to renovate the property and hold as a long term investment
 

penalty tax - failure to keep accounting books and records of transactions - incorrect profits tax returns - s 82A of the Inland Revenue Ordinance
 

sale of properties to an associated company - error in tax return - whether capital gain - intention of acquiring properties - s 70A of the Inland Revenue Ordinance
 

whether the taxpayer was carrying on a trade in nickels future such that the loss in the one-off transaction was deductible
 

purchase and resumption of property - whether profit assessable to profits tax
 

group reorganisation - purchase of trade marks at high value - whether deductible expenses - s 61 of the Inland Revenue Ordinance
 

penalty tax - incomplete tax return - genuine mistake - quantum of penalty - s 82A of the Inland Revenue Ordinance
 

foreign exchange broker - remuneration by way of commission - whether taxpayer carrying on business on own account - whether contract of service or contract for services determined by the totality of facts and not mechanical ticking of a check list - Inland Revenue Ordinance s 8(1)
 

employment - place of service - source of income - 60 days limit - whether liable to salaries tax - s 8 of the Inland Revenue Ordinance
 

s 9(1A)(a) - whether part of the commission labelled reimbursement for rental is taxable
 

offshore employment - whether taxpayer rendered part of his services in Hong Kong - if so, how his income should be apportioned