Decision No
 

PENALTY TAX -
 

failure by a resigned employee to report chargeability to salaries tax - whether omission by the taxpayer was a genuine honest mistake - what factor(s) regard as reasonable excuse for omission - not every slip of the mind constitute a reasonable excuse for such omission - a matter of degree - look at all the circumstances of the case to decide whether the taxpayer had reasonable excuse - duty to make a full, complete, accurate and correct return - 10% penalty under s 82A of Inland Revenue Ordinance - inflation is not a good reason for increasing the percentage under s 82A of IRO
 

failure by a director to report chargeability to salaries tax - voluntary disclosure and invite the Commissioner to issue additional salaries tax assessments - imposition of additional tax may only be made by the Commissioner or a Deputy Commissioner personally - this power cannot be delegated to any other person - whether the Second Notice in this case is a valid notice - voluntary disclosure is a good mitigating factor - tariff rate for simple omission of income - s 82A of the Inland Revenue Ordinance
 

incomplete - a financial statement signed by only one director - whether reasonable excuse - ss 51(1) and 82A of the Inland Revenue Ordinance
 

incorrect salaries tax return - failure to disclose director's fees and bonus received on 2 July 1996 in the tax return for the year of assessment 1995/96 - whether monies taxable when received or when entitlement to them established - whether a reasonable excuse existed under s 82A Inland Revenue Ordinance - demeanour of the taxpayer - 10% penalty under s 82A Inland Revenue Ordinance
 

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

whether profits derived from the sale of three properties assessable to profits tax
 

real property - intention at the time of purchase - whether liable for profits tax - s 68(4) of the Inland Revenue Ordinance
 

rebuilding allowance - whether intention 'realistic or realisable' - whether liable to profits tax - s 68(4) of the Inland Revenue Ordinance
 

sale of property - whether profits derived from the sale of the property assessable to profits tax - whether intention at the time of acquisition 'genuinely held, realistic and realisable'
 

whether property acquired for the purpose of long term investment
 

whether rental income or license fee derived from car parking space - ss 5(1), 5(2)(a) and 5B(2) of the Inland Revenue Ordinance
 

profits arising from sale of property - investment or trade - intention at the time of acquisition - Inland Revenue Ordinance ss 68(4), 70
 

purchase and sale of residential property under construction - whether profits derived from the sale of a property assessable to profits tax - intention at the time of acquisition - whether quick sale indicative of an intention to trade
 

whether sale of the property a trading activity - whether the property was purchased for the purpose as a residence - Inland Revenue Ordinance ss 2 & 68(2B)
 

loss arose from trading in foreign currencies - deductible - whether taxpayer had been carrying on a trade or business - s 14(1) of the Inland Revenue Ordinance, Chapter 112
 

acquisition of property - intention of purchaser at time of acquisition - burden of proof on purchaser - taxability of proceeds - s 16(1) Inland Revenue Ordinance
 

acquisition and sale of property - intention of purchaser at time of acquisition - burden of proof on purchaser - whether tax chargeable on the profits of sale - s 68(4) Inland Revenue Ordinance
 

acquisition and sale of property - intention of purchaser at time of acquisition - burden of proof on purchaser - whether tax chargeable on the profits of sale - s 68(4) Inland Revenue Ordinance
 

employment - source of income - whether liable to salaries tax - ss 8(1) and 8(1A)(b) of the Inland Revenue Ordinance
 

allowable deductions - whether housing allowance was deductible - meaning of the word 'refund' under s 9(1A)(a)(ii) of the Inland Revenue Ordinance - whether entrance fee was deductible - s 12(1)(a) of the Inland Revenue Ordinance - whether medical expenses was deductible - discretion to order to pay cost - s 68(9) of the Inland Revenue Ordinance
 

whether payment described as 'long service payment' constituted long service payment within the meaning of the Employment Ordinance - whether liable to salaries tax - s 8 of the Inland Revenue Ordinance - ss 31R and 31T(2) of the Employment Ordinance
 

whether payment from assets of staff provident fund and staff retirement plan subject to salaries tax - whether recognized occupational retirement schemes - Inland Revenue Ordinance ss 2, 8(1), 9(1), 87A - Occupational Retirement Schemes Ordinance s 2
 

assessable income - meaning - Civil Service Regulations 735 - mileage allowance in respect of home-to-office journeys - ss 12(1)(a), 12(1)(b), 11B, 11C and 11D of the Inland Revenue Ordinance, Chapter 112
 

retirement benefits under a company's internal pension scheme upon restructuring of the company's pension scheme - immediate re-employment on different terms - whether taxable - s 8 of the Inland Revenue Ordinance, Chapter 112 - ss 31R(2)(a), 31Y(2), 31T(2) of the Employment Ordinance, Chapter 57