Decision No
 

PENALTY TAX -
 

incorrect salaries tax return - two sources of income: business profits and salary income - failure to disclose salary income in tax return - whether a reasonable excuse existed under section 82A of the Inland Revenue Ordinance ('IRO') - demeanour of the taxpayer - 6% penalty under section 82A of the IRO
 

incorrect return submitted - section 82A of the Inland Revenue Ordinance ('IRO'), Chapter 112
 

incorrect returns - basis of assessment
 

duty of taxpayer to rectify his error in his return - section 82A of the Inland Revenue Ordinance ('IRO') - frivolous appeal - order to pay cost
 

incorrect return - omit to report income from the exercise of share options - section 82A of the Inland Revenue Ordinance ('IRO')
 

error or omission - change of intention from investment to trade - valuation - Inland Revenue Ordinance ('IRO'), section 70A
 

accounting method - principle against anticipation of both income and profits - whether profit is realised when it is received or when it becomes due and payable - whether or not the instalment overdue and unpaid should be brought into account - trade debts - dividend payment
 

principal place of business in Hong Kong - certain business operations outside Hong Kong - source of profits - whether liable to profits tax - section 14 of the Inland Revenue Ordinance ('IRO')
 

acquisition and sale of property - intention at time of purchase - burden of proof on purchaser to establish that property purchased for long term investment - credibility of the taxpayer before the Board - section 14 of the Inland Revenue Ordinance ('IRO')
 

real property - whether the gains arising from the disposition of a property was liable for profits tax.
 

real property - whether the gains arising from the disposition of a property was liable for profits tax - burden of proof - section 68(4) of the Inland Revenue Ordinance ('IRO')
 

whether loss from the sale of a property was trading in nature - whether it should be allowed in his personal assessment - sections 2(1), 14, 42(2) and 68(4) of the Inland Revenue Ordinance ('IRO')
 

taxpayer working in Hong Kong for approximately 60 days per year - whether exempt from salaries tax - definition of 'a total of 60 days' - sections 8(1), 8(1A)(b), 8(1B), 66(1) of the Inland Revenue Ordinance ('IRO'), section 71(1) of the Interpretation and General Clause Ordinance
 

holiday allowance - whether exempt from salaries tax as being 'holiday warrant or passage' under section 9(1)(a) of the Inland Revenue Ordinance ('IRO')
 

rent paid by employer as part of salary - accessibility - sections 8(1), 9(1)(a) and 61 of the Inland Revenue Ordinance ('IRO'), Chapter 112
 

income arising in or derived from Hong Kong - taxpayer being seconded to work in another country in the currency of his employment - sections 8(1), 8(1A)(a), 8(1A)(b) and (c), 8(1B), 66(1), 66(1A) and 68(2) of the Inland Revenue Ordinance ('IRO'), Chapter 112
 

revised notification filed by employment - assessable - ex gratia payment - sections 8, 9 and 68(4) of the Inland Revenue Ordinance ('IRO'), Chapter 112
 

whether deductible expenses - Inland Revenue Ordinance ('IRO'), section 12(1)(a)
 

dependent brother/sister allowance - disabled dependent allowance - eligibility - incapacitated for work - Inland Revenue Ordinance ('IRO'), sections 30B and 31A
 

single parent allowance - whether or not pro rata allowance should be granted - whether or not financial loss is one of the consideration to decide - purpose of section 32(2) of the Inland Revenue Ordinance ('IRO') - abuse the process of the Board - section 68(9) of the IRO
 

sections 61 and 61A of the Inland Revenue Ordinance ('IRO') - whether or not there was commercial reality in the transaction - additional salaries tax assessments - section 58 of the IRO
 

deductions - payments made to alleged sub-agents - section 82A of the Inland Revenue Ordinance ('IRO').
 

employment - place of service - source of income - 60 days limit - whether liable to salaries tax - section 8 of the Inland Revenue Ordinance ('IRO')
 

whether a transaction entered into was for the sole or dominant purpose of obtaining a tax benefit - objective test to be applied under section 61A - sections 61A and 68 of the Inland Revenue Ordinance ('IRO')