Decision No
 

PENALTY TAX -
 

submission of incorrect tax returns without reasonable excuse - imposition of additional tax assessments at the average rate of 7% per annum compound on the amounts of tax undercharged for the delay - whether taxpayer agreed to face additional or penalty tax is irrelevant under s 82A - appeal was frivolous and vexatious and an abuse of the process - penalize in costs - ss 68(4), 68(9), 70, 82A and 82B of the Inland Revenue Ordinance ('IRO')
 

D143/01 (Word file)

late filing of returns - ss 51(1) and 82A of the Inland Revenue Ordinance ('IRO') - whether persistent failure to submit return on time should be regarded as a specie of tax evasion - whether cavalier attitude of the appellant in delaying to submit accounts aggravated the default
 

D149/01 (Word file)

submission of incorrect tax returns without reasonable excuse - imposition of additional tax assessments in a sum equivalent to 10% of tax undercharged - the Commissioner was entitled to impose additional tax but had not placed sufficient weight on the appellant's track record
 

D150/01 (Word file)

failing to report income fully - whether reasonable excuse - financial difficulty
 

D158/01 (Word file)

whether there was basis for re-opening the assessment of profits tax made more than a year - taxpayers are bound by the approach adopted in their submitted financial statements to the Inland Revenue Department ('IRD') - definition of 'mistake, errors or omissions' - sudden change of the case before the Board - proper explanation or supporting evidence is required - ss 70 and 70A of the Inland Revenue Ordinance ('IRO')
 

D142/01 (Word file)

whether the sale of a property was trading in nature - depend on the intention at the time of purchase - necessary to consider all relevant objective factors - economic strength - the span of time in holding the property - reason for sale - number of property being held at any one time - the circumstances and facts of the case go against the contention of the appellant - conflicting explanations given by the appellant - display of dishonesty and lack of integrity - the appellant's allegation was misleading - no evidence could be placed before the Board to substantiate her contention - burden of proof on the appellant - ss 2(1), 14(1) and 68(4) of the Inland Revenue Ordinance ('IRO'). [Decision in Chinese]
 

D145/01 (Word file)

sale of property - intention at the time of acquisition - whether the acquisition of the said property was for the rental yields from the tenancy - whether the acquisition of the said property was to make provision on retirement of shareholder - whether successive sales of the said property indicative of trading intention - whether disposal of the said property within one month of purchase was consistent with an intention to hold the said property on a long-term basis - s 68(4) of the Inland Revenue Ordinance ('IRO') - onus of proof on the appellant
 

D147/01 (Word file)

source of income - securities trades
 

D152/01 (Word file)

whether certain sums were deductible - onus of proof on the taxpayer that an expense was incurred for the production of his assessable profits - purpose of payments - whether the expense was bona fide incurred in the production of the chargeable profits - matter of fact and degree - whether a relevant transaction between the taxpayer and a service company was artificial within the ambit of s 61 - whether the sole and dominant purpose of enabling the taxpayer to obtain a tax benefit - ss 16, 17, 61, 61A and 68(4) of the Inland Revenue Ordinance ('IRO')
 

D153/01 (Word file)

property - investment or trade
 

D157/01 (Word file)

manufacturing business both in Hong Kong and Mainland China - whether tooling income and interest ncome part and partial to the manufacturing process - apportionment of profits - Departmental Interpretation and Practice Notes No 21 ('DIPN 21')
 

D163/01 (Word file)

whether tenancy of a property ceased to operate during part of the years of assessment - definition of the word 'payable' - surrender, cancellation or suspension of tenancy by conduct - fact of life was not the precise legal basis - ss 5(1), 5B, 7C and 68(4) of the Inland Revenue Ordinance ('IRO')
 

D151/01 (Word file)

whether gratuity was chargeable to salaries tax - whether long service payment chargeable to salaries tax - ss 9(1)(a) and 11D(b) of the Inland Revenue Ordinance ('IRO') - whether such lump sum was a compensation for the lost of job - whether such lump sum was a provision of 'sweetener' for early retirement. [Decision in Chinese]
 

D133/01 (Word file)

dependent parent allowance - disabled dependant allowance - disability certified by the Pneumoconiosis Medical Board - ss 30(1), 31A and 68(4) of the Inland Revenue Ordinance ('IRO') - ss 15B(1)(a) and 27 of the Pneumoconiosis (Compensation) Ordinance ('P(C)O')
 

D137/01 (Word file)

employment - source of income - s 8(1), 8(1A) and 8(1B) of the Inland Revenue Ordinance ('IRO')
 

D138/01 (Word file)

home loan interest - whether interest on loan utilised to pay premium for the purpose of removing the restriction on alienation entitled to deduction - s 26E of the Inland Revenue Ordinance ('IRO') - Housing Ordinance ('HO')
 

D139/01 (Word file)

single parent allowance - sole or predominant care of the child - 'care' is not necessarily the same as 'custody' - s 32(1), (2) and (3) of the Inland Revenue Ordinance ('IRO') - s 19 of the Matrimonial Proceedings and Property Ordinance
 

D140/01 (Word file)

source of income - Chinese income tax paid - ss 8(1), (1A), (1B) and 68(4) of the Inland Revenue Ordinance ('IRO'). [Decision in Chinese]
 

D141/01 (Word file)

whether housing allowance was chargeable to tax - whether housing allowance was paid as rental refund - intention at the time of entering into the contract of employment - control test to screen out the colourable scheme to save tax - s 9(2) of the Inland Revenue Ordinance ('IRO')
 

D144/01 (Word file)

whether reasonable excuse preventing the appellant from lodging a valid appeal within one-month period - s 66(1A) of the Inland Revenue Ordinance ('IRO')
 

D146/01 (Word file)

whether the service agreement was a scheme entered into to enable the appellant to obtain tax benefit - whether the service agreement was a form of disguised employment - ss 12(1)(a), 16(1), 61A(2) and 68 of the Inland Revenue Ordinance ('IRO') - onus of proof - frivolous and vexatious appeal - order to pay costs
 

D154/01 (Word file)

whether employment - whether transaction for obtaining tax benefit - s 61A of the Inland Revenue Ordinance ('IRO')
 

D155/01 (Word file)

housing allowance - whether remuneration
 

D156/01 (Word file)

married person's allowance - when marriage becoming effective - s 2(1) of the Inland Revenue Ordinance ('IRO')
 

D161/01 (Word file)

whether services rendered outside Hong Kong - s 8(1), (1A) and (1B) of the Inland Revenue Ordinance ('IRO')
 

D162/01 (Word file)