Decision No
 

PENALTY TAX -
 

incorrect profits tax return - without reasonable excuse - penalty under s 82A of the Inland Revenue Ordinance
 

failure to include in tax return a sizable taxable gratuity - no reasonable excuse - penalty not excessive - Inland Revenue Ordinance, Chapter 112, s 82A
 

taxpayer's return filed late - factors to be taken into account to assess propriety of additional tax being imposed - good track record of submitting returns on time - lack of candour on the part of the taxpayer - mitigating circumstances - ss 82A and 82B(2)(c) of the Inland Revenue Ordinance ('IRO')
 

incorrect salaries tax return - failure to disclose certain sums chargeable to tax - lack of detailed knowledge of Hong Kong tax law - 10% penalty - whether a reasonable excuse existed under s 82A of the Inland Revenue Ordinance
 

s 82A of the Inland Revenue Ordinance - late filing of returns - whether quantum of penalty excessive - whether professional advisers' negligence a mitigating factor
 

extension of time - notice of appeal filed out of time - ss 66(1A) and 82A of the Inland Revenue Ordinance
 

background of the taxpayer - cooperation with the assessor - uniform rate of penalty tax assessment
 

incorrect salaries tax return - ss 11D(a), 51, 68(4), 68(8)(a), 82A and 82B of the Inland Revenue Ordinance
 

standard practice of Inland Revenue Department to draw attention of the taxpayer the possibility to impose penalty tax - whether withdrawal of the objection was part of a full and final settlement - whether the Commissioner was barred to assess penalty tax

acquisition and sale of property - intention at time of purchase - change of intention after purchase - date of change of intention - burden of proof on purchaser - whether tax chargeable upon revaluation of property - s 68(4) of the Inland Revenue Ordinance
 

application for an extension of time to appeal against the determination of the Commissioner - meaning of 'other reasonable cause' under s 66(1A) of the Inland Revenue Ordinance
 

acquisition of property - intention of taxpayer at time of acquisition - burden of proof on purchaser - lack of supporting evidence fatal to the appeal - ss 14(1) and 68(4) of the Inland Revenue Ordinance ('IRO') - discretion to order costs under s 68(9) of the IRO
 

whether gain on disposal of properties was of capital or trade in nature
 

deduction in assessable profit in preceding year on the basis of loss on securities found to be missing - all the lost shares recovered - whether gains on disposal of recovered shares should be charged to tax
 

profits realized from sale of property - whether for investment or trading purpose - intention of taxpayer at the time of acquisition - Inland Revenue Ordinance, Chapter 112, s 68(4)
 

deductible expense - management fee accountable to service company - ss 16 and 68(9) of the Inland Revenue Ordinance
 

service company - management fee - whether deductible in computing the assessable profit - Practice Note No. 24 - Inland Revenue Ordinance, Chapter 112, ss 16, 17, 61, 64, 68(4) and Rule 2A(1) of the Inland Revenue Rules
 

interest income - whether the taxpayer took part in the transaction as trader or as agent - whether the business carried on in Hong Kong - s 15(1)(f) of the Inland Revenue Ordinance - whether the interest income has accrued to the taxpayer
 

whether assets purchased medical records or goodwill - whether plant and thus qualifying for depreciation allowances
 

profits realized from sale of property - whether for investment or trading purpose - intention of taxpayer at the time of acquisition - Inland Revenue Ordinance, Chapter 112, ss 2(1), 14(1) and 68(4)
 

future contracts in USA - whether outgoings deductible - Inland Revenue Ordinance, s 16(1)
   

whether the sale of a property was a sale of capital asset or trading stock - testing the taxpayer's assertion against the surrounding circumstances - under what circumstances would the rebuilding allowance be granted - ss 14(1) and 60 of the Inland Revenue Ordinance

allowable deductions - meaning of 'outgoings and expenses' - whether taxpayer entitled to claim deductions - s 12(1)(a) of the Inland Revenue Ordinance
 

whether the housing allowance is exempt from salaries tax assessment - Inland Revenue Ordinance, s 9(1)(a)
 

income - severance payments and long service payments - ss 8 and 9(1)(a) of the Inland Revenue Ordinance - ss 31B(2), 31J(2), 31R, 31T(1) and 31T(2) of the Employment Ordinance
 

ascertaining the number of employment contract and the source of income - the Commissioner is entitled to scrutinize all evidence, documentary or otherwise, that is relevant to the matter concerned - ss 8(1), 12(1)(a) and 68(4) of the Inland Revenue Ordinance