Decision No
 

PENALTY TAX -
 

starting point - record of the taxpayer in preceding years - delay in submitting return
 

omission to include transportation allowance - unblemished record - whether assessment excessive
 

incorrect return - no dishonest intent - ss 80(2)(b) and 82A of the Inland Revenue Ordinance ('IRO')
 

late filing of tax return - reasonable excuse - mitigating factor - s 82A of the Inland Revenue Ordinance ('IRO')
 

failure to report chargeability without reasonable excuse - grossly understated assessable profits in tax return for several years of assessment - no evidence of absence of intention to evade tax - duty on taxpayer to notify IRD of his chargeability - no duty on IRD to issue Form IRC 6121 - absence of Form IRC 6121 is no licence nor reasonable excuse for failing to notify IRD of a taxpayer's chargeability - penalty in the rate of 100% of the tax undercharged - ss 51 and 82A of Inland Revenue Ordinance ('IRO')
 

real property - whether the gains arising from the disposal of properties were liable for profits tax - s 68(4) of the Inland Revenue Ordinance ('IRO')
 

understatement of income - whether sufficient business record - s 51C of the Inland Revenue Ordinance
 

real property - whether the gains arising from the disposal of properties were liable for profits tax
 

whether profits from the sale of a property assessable to profits tax - whether the sale of a property was a sale of capital asset or trading stock - testing the taxpayers' assertion against the surrounding circumstances - s 68(4) of the Inland Revenue Ordinance ('IRO')
 

additional tax - deductibility - fees paid to a consultancy company by a barrister - ss 61, 68(4) and 68(9) of the Inland Revenue Ordinance ('IRO')
 

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 the Inland Revenue Ordinance ('IRO')
 

sale of property - whether profits derived from the sale of the property assessable to profits tax - intention at the time of acquisition - change of the intention of purchase - ability to carry out intention - onus of proof - s 68(4) of the Inland Revenue Ordinance ('IRO') - application to re-open hearing - finality to evidence - accounting treatment - whether purchase and sale of the subject property within short time span and sale as cofirmor indicative of trading intention
 

acquisition and sale of property - intention at time of purchase - burden of proof on purchaser to establish that property purchased for long term investment - whether tax chargeable upon profits derived from sale of property - what is an allowable deduction upon sale of property - ss 16(1) and 17 of the Inland Revenue Ordinance ('IRO')
 

whether taxpayer entitled to claim deductions for expenses allegedly incurred in the course of the employment - whether 'prevented' from giving the requisite notice of appeal - s 66(1) of the Inland Revenue Ordinance ('IRO')
 

allowable deductions - expenses of self-education - s 12(1)(c) of the Inland Revenue Ordinance ('IRO')
 

dependent parent allowance - other claimants for the allowance - re-open assessment - s(s) 33(3)(c), 60 and 70A of the Inland Revenue Ordinance ('IRO') - additional assessment
 

statutory meaning of 'expenses of self-education' - interest on fees must have been paid by the taxpayer not merely incurred - ss 12(6)(c) and 68(9) of the Inland Revenue Ordinance ('IRO')
 

salary income - rental value of place of residence provided by employer - the existence of landlord and tenant relationship - ss 8(1), 9(1), 9(1A), 9(2), 61 and 68(4) of the Inland Revenue Ordinance ('IRO')
 

appeal - extension of time - merits - home loan interest deduction - ss 26E(9), 26E(3)(a), 64(4), 66 and 68(4) of the Inland Revenue Ordinance ('IRO') - ss 19 and 71(1)(b) of the Interpretation and General Clauses Ordinance, Chapter 1
 

income received as consultant fees - whether income derived from an 'office or employment of profit' or income for a business - ss 8 and 16 of the Inland Revenue Ordinance ('IRO')
 

taxpayer providing services outside Hong Kong - whether salary derived from a source in Hong Kong - whether exempt from salaries tax - burden on the taxpayer to prove that the assessment is incorrect - ss 8(1), 8(1A)(b), 8(1B) and 64(8) of the Inland Revenue Ordinance ('IRO')
 

taxpayer providing services outside Hong Kong - working for Hong Kong company with subsidiary in China - whether salary derived from a source in Hong Kong - whether exempt from salaries tax - ss 8(1), 8(1A)(b) and 8(1B) of the Inland Revenue Ordinance ('IRO')