Decision No
 

PENALTY TAX -
 

incorrect salaries and individual tax returns - failure to disclose 93% of income over period of six years. Assets Betterment Statement - whether penalty tax of 110% excessive and unreasonable in the circumstances - s 82A of the Inland Revenue Ordinance
 

incorrect salaries tax return - failure to complete the tax return properly - ignorant of law is not a defence - same rate of penalty should be adopted for the two years of assessments - 6.193% penalty under s 82A of the Inland Revenue Ordinance
 

failure to complete and return profits tax return within time limit - whether return received by taxpayer - whether requirements of the notice in the Return 'given' within the meaning of s 82A(1)(e) - non receipt - reasonable excuse
 

the Board of Review has no power to extend time for filing an appeal under s 82A - ignorant of law nor financial difficulty is not a ground for appeal - the Board of Review has no power to re-open the former decision by a different Board - 100% penalty under s 82A of the Inland Revenue Ordinance
 

delay in submitting profits tax return - duty of the taxpayer to regulate its own affairs to comply with the Inland Revenue Ordinance - whether additional tax of 9.83% excessive - burden of proof on taxpayer
 

company incorporated to hold property - financial ability of the company - whether profits derived from the sale of a property assessable to profits tax - the lack of any documentary evidence of the property ever being put on the market or with estate agents - onus on the company to show its purpose
 

whether taxpayer entitled to deduct the 'Foreign Exchange Loss' in ascertaining profits - s 17(1) of the Inland Revenue Ordinance
 

whether profits realized from sale of property assessable to profit tax - whether the purchase and sale of the property amounted to an adventure in the nature of trade - whether building allowance should be granted in respect of the property - s 2, 14 of the Inland Revenue Ordinance, Chapter 112
 

disposal of property - investment or trade
 

whether profits derived from sale of properties assessable to profits tax - whether trading asset or capital asset - intention at the time of acquisition - subjective intention is to be tested against objective facts and circumstances
 

sale of property - unilateral declaration of the intention of the company - financial ability of the company - internal allocation of units to shareholders - change of the intention of the company
 

whether profits realized from sale of property assessable to profit tax - whether the purchase and sale of the property amounted to an adventure in the nature of trade or for purposes of self-residence and preservation of the value of the money - appeal frivolous and vexatious and an abuse of the process - s 68(9) of the Inland Revenue Ordinance, Chapter 112
 

employment - locality of contract of employment - locality of payment of salary - locality of employer - whether liable to salaries tax on full income - s 8 of the Inland Revenue Ordinance
 

whether payment for termination of directorships is compensation for loss of office and assessable to salaries tax
 

Disability Allowance - whether the Social Welfare Department is the only competent authority to decide a person's eligibility - whether eligibility can be determined before application to the Social Welfare Department - s 31A(1) of the Inland Revenue Ordinance - s 19 of the Interpretation and General Clauses Ordinance
 

tax scheme - whether the monies paid to the company wholly owned by the taxpayer and his wife could properly be regarded as remuneration to the taxpayer - whether the settlement payment by the employer was referable to the taxpayer's employment