Decision No
 

PENALTY TAX -
 

incorrect salaries tax returns for two successive years - incorrectness caused by a continuing cavalier attitude - whether 25% of the amount of tax undercharged excessive in respect of the first year
 

late filing of profits tax return - second time offender - doubling the rate of the previous penalty - not outrageous, excessive or unacceptable - s 82A of Inland Revenue Ordinance
 

late filing of profits tax return - assessment of additional tax - considerations in arriving at the assessment of additional tax - whether absence of further warning reasonable excuse - s 82A of the Inland Revenue Ordinance
 

incorrect salaries tax return - failure to disclose gains from exercise of share options - first offender - ignorant of law - unintentional - 10% penalty under s 82A of Inland Revenue Ordinance
 

deduction of financial cost under s 16(1) in assessing the assessable profit - whether interest payable has been deducted under s 16(1) of the Inland Revenue Ordinance
 

capital gains or trading profit - purchased property for user which would amount to breach of lease conditions
 

asset betterment - large unexplained transactions - taxpayer failed to discharge onus
 

whether profit derived from sale of property assessable to profits tax
 

whether profit derived from sale of a property assessable to profits tax
 

joint purchase and sale of flat by three persons - whether adventure in nature of trade - claim by one of the taxpayers that flat was purchased as his residence - whether partnership existed between the persons assessed to profits tax - IRO ss 2(1), 14 and 22(1)
 

allowable deductions - 'Agency Right Fee' - whether taxpayer entitled to deduct the sum of agency right fee in ascertaining profits - ss 16(1a) and 17(1) of the Inland Revenue Ordinance
 

s 8(1) - whether income arising in or derived from Hong Kong - s 8(1B) - 60 days rule
 

whether 'Severance pay' constitutes 'gratuity' which is taxable - ss 8(1) and 9(1) of the Inland Revenue Ordinance