Decision No
 

PENALTY TAX -
 

failure to furnish duly completed tax returns for five years - estimated assessments made and paid without objection - no mitigating factor - additional assessments made upon investigation - no reasonable excuse for omission - additional assessments found to be manifestly inadequate - the Board increased the assessments to 100% - ss 68(8)(a) and 82B(3) of the Inland Revenue Ordinance ('IRO')
 

incorrect return by omitting income - gain from exercise of share option - costs - ss 82A, 82B and 68 of the Inland Revenue Ordinance ('IRO'), chapter 112
 

starting point - extenuating factors - Inland Revenue Ordinance ('IRO') s 82A
 

payment terms - reasonable excuse - Inland Revenue Ordinance ('IRO') s 82A
 

loss sustained by share dealing business - meaning of 'trade' and 'business' - ss 2, 14(1), 42(2)(b) and 68(4) of the Inland Revenue Ordinance ('IRO') - s 5A of the Companies Ordinance
 

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 - s 68(4) of Inland Revenue Ordinance
 

acquisition and sale of property - intention at time of purchase - burden of proof on purchaser to establish that property purchased for long term investment
 

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) of Inland Revenue Ordinance
 

sale of property - trading or capital gain - alleged error in tax turn - correction under s 70A of the Inland Revenue Ordinance ('IRO') chapter 112 - s 68 of the IRO chapter 112
 

service company - deductions claimed in respect of rent of residential home - whether properly deducted - Departmental Interpretation and Practice Note No 24 ('DIPN 24') - whether retrospectively effective - ss 16(1), 17(1), 61 and 68(4) of Inland Revenue Ordinance ('IRO')
 

source of profits - within or outside Hong Kong - Departmental Interpretation Practice Note 21 ('DIPN 21') - whether profits arose in or were derived from Hong Kong from a trade, profession or business - ss 2, 14 of the Inland Revenue Ordinance ('IRO')
 

sale of property - whether capital gain or trading gain - whether the sale and purchase of the property amounted to an adventure in the nature of trade
 

sale of property - whether profits derived from the sale of the property assessable to profits tax - ss 2 and 68(4) of the Inland Revenue Ordinance ('IRO') - onus of proof - intention of the taxpayer - termination of the lease by the tenant - financial difficulty - whether the quick sale is inconsistent with the long term investment intention
 

real property - whether the gains arising from the disposal of a property was liable for profits tax - ss 2, 14(1) and 68(4) of the Inland Revenue Ordinance ('IRO')
 

sale of shares in private company - whether investment or trade
 

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

whether housing allowance or rent refund - whether transaction artificial or fictitious - Inland Revenue Ordinance ('IRO') ss 8(1), 9(1A) and 61
 

s 68(4) of the Inland Revenue Ordinance ('IRO') - onus of proof - whether an employment income arose in or was derived from Hong Kong - two-contract arrangement - interpretation of the facts - tax-consideration motivation
 

employment - whether liable to salaries tax - whether taxpayer was carrying on business on her own account
 

s 8(1) of the Inland Revenue Ordinance ('IRO')- whether income arising in or derived from employment - whether 'top-up supplement' amount paid on leave was in the nature of an ex gratia payment
 

additional assessment - interest free loan during study leave - deductions in respect of expenses incidental to study - ss 8(1), 8(2), 9(1), 11B, 11D, and 12(1) of the Inland Revenue Ordinance ('IRO')
 

whether certain sums were paid by employer as a refund of rent - appeal lodged outside the prescribed period - ss 61 and 66 of the Inland Revenue Ordinance ('IRO')
 

employment - place of performance - source of income - 60 days limit - whether liable to salaries tax - totality of facts test - when income could be apportioned for determination of salaries tax - ss 8(1) and 8(1A) of the Inland Revenue Ordinance ('IRO')
 

termination of employment - whether salary and supplementary allowance paid for the period in which the payee was not required to work was liable to salaries tax - ss 8(1) and 9 of the Inland Revenue Ordinance ('IRO')