Tax Information : Status of Tax Cases

Status of Tax Cases as at 31 May 2008

	Cases Finalized Pending Publication or Cases Not Yet Finalized
		Relating to Inland Revenue Ordinance
		Relating to Estate Duty Ordinance
		Relating to Stamp Duty Ordinance

Cases Finalized Pending Publication or Cases Not Yet Finalized :-
Relating to Inland Revenue Ordinance

Cases finalized, pending publication :-

Taxpayer's Name	Issues under Appeal	Court	Current Position
Macquarie Securities Ltd [Formerly known as ING Baring Securities (HK) Ltd ] [FACV 19/2006]	Source of brokerage commission and marketing income. [Previous CFI Case No.:HCIA 1/2003] Previous CA Case No.:CACV 202/2005]	CFA	Judgment issued by CFA on 5 October 2007. Taxpayer's appeal was allowed.   For details of the headnote, please click here.
Tai Hing Cotton Mill (Development) Ltd [FACV 2/2007]	Whether expenses paid to a related company should be tax deductible. [Previous CFI Case No.:HCIA 8/2004] Previous CA Case No.:CACV 343/2005]	CFA	Judgment issued by CFA on 4 December 2007. Commissioner's appeal was allowed. For details of the headnote, please click here.
HIT Finance Ltd & HK Int'l Terminals Ltd [FACV 8 & 16/2007 FACV 9 & 17/2007]	Deductibility of interest payable on floating rate notes issued by HIT Finance Ltd and interest payable by HK Int'l Terminals Ltd to HIT Finance Ltd. [Direct appeal to CA Previous CA Case No.:14/2005 & 15/2005 ]	CFA	Judgment issued by CFA on 4 December 2007. Commissioner's appeal was allowed.   For details of the headnote, please click here.
Real Estate Investments (N.T.) Ltd [FACV 3/2007]	Whether profit on disposal of landed property should be assessed to tax. [Previous CFI Case No.:HCIA 8/2005] Previous CA Case No.:CACV 15/2006]	CFA	Judgment issued by CFA on 7 January 2008. Taxpayer's appeal was dismissed. For details of the headnote, please click here.
Lee Y.S. & Yeung Y.C. [FACV14/2007]	Whether loss from securities and share transactions should be deducted under Personal Assessment. [Previous CFI Case No.:HCIA 11/2005] Previous CA Case No.:CACV 180/2006]	CFA	Judgment issued by CFA on 31 January 2008. Taxpayers' appeal was dismissed.
China Map Ltd & Others [FACV 28, 29, 30 & 31/2007]	Whether profit on disposal of landed properties should be assessed to tax. [Previous CFI Case No.:HCIA 4, 5, 6 & 7/2005] [Previous CA Case No.:CACV 341, 342, 343 & 344/2006]	CFA	Judgment issued by CFA on 16 April 2008. Taxpayers' appeals were dismissed. For details of the headnote, please click here.
Tong S.L., Franco [HCIA 2/2006]	Deduction for bad debts incurred.	CA	Taxpayer's appeal to CA was dismissed by way of consent. For details of the headnote, please click here.
Canton Industries Ltd [HCIA 6/2007]	Amortisation of permanent textile quota - whether deductible.	CFI	Judgment issued by CFI on 7 March 2008. Taxpayer's appeal was dismissed. For details of the headnote, please click here.

Cases not yet finalized :-

Taxpayer's Name	Issues under Appeal	Court	Current Position
Indosuez W I Carr Securities Ltd [CACV 57/2006]	Source of brokerage commission and interest income. [Previous CFI Case No.:HCAL 118/2004]	CA	Commissioner's application for judicial review against the Board's refusal to state a case was allowed by CFI and CA. The Taxpayer has appealed to CFA.
S.C. Sawhney [HCIA 1/2006]	Whether share option gains derived by the Taxpayer should be assessed to tax.	CFI	Judgment issued by CFI on 28 April 2006. Commissioner's appeal was allowed.
Tsai G. W. [CACV 7/2008 ]	Whether gratuity, severance pay or long service payment. Previous CFI Case No.:HCIA 1/2007]	CA	Judgment issued by CFI on 5 November 2007. Commissioner's appeal was dismissed. Commissioner's appeal to CA scheduled to be heard in September 2008.
Ngai Lik Electronics Co Ltd [CACV 22/2008]	Section 61A of the IRO and source of profits [Previous CFI Case No. : HCIA 5/2007]	CA	Taxpayer's appeal was dismissed by CFI on 11 December 2007. Taxpayer's appeal to CA scheduled to be heard in October 2008.
Shui On Credit Co Ltd [CACV 85/2008 ]	Whether debt defeasance scheme caught under Section 61A of the IRO. [Previous CFI Case No. : HCIA 2/2007]	CA	Judgment issued by CFI on 5 March 2008. Taxpayer's appeal was dismissed. Taxpayer's appeal to CA scheduled to be heard in December 2008.
Datatronic Ltd [HCIA 4/2007]	Whether part of the Taxpayer's profits should be treated as offshore profits.	CFI	Commissioner's appeal and Taxpayer's cross-appeal heard on 16 - 17 April 2008. Pending judgment.
Chu R. Y. [HCIA 7/2007]	Penalty for omission of income.	CFI	Taxpayer's appeal scheduled to be heard in June 2008.
Fuchs, W. A. H. [HCIA 1/2008]	Lump sum received upon termination of employment - whether assessable.	CFI	Taxpayer's appeal was heard on 29 May 2008. Pending judgment.

Cases Finalized Pending Publication or Cases Not Yet Finalized :-
Relating to Estate Duty Ordinance

Cases finalized, pending publication :-

Taxpayer's Name	Issues under Appeal	Court	Current Position
-	-	-	-

Cases not yet finalized :-

Taxpayer's Name	Issues under Appeal		Court	Current Position
BUX A. [HCED 1/2005]	Whether the legal charge attached to the matrimonial home shall be deducted from the net principal value of the deceased's dutiable estate		Court of First Instance	The Judgement was issued on 14 February 2006. Taxpayer's appeal was allowed. Commissioner has lodged an appeal to CA. Date of hearing not yet fixed.
CHAN N.T. [HCMP 1178/2004]	Whether a cheque banked on Saturday and cleared on the following Monday, formed part of the estate of the drawer of the cheque who passed away on the Sunday in between; and whether the consideration payable by the deceased for the purchase of a mainland property from a mainland joint venture involving a mainland party and a Hong Kong party, through a HK agent was deductible from the value of her estate.		Court of First Instance	Judgement by CFI was issued on 8 April 2008. Taxpayer's appeal was dismissed.
KAO K. KAO D. KAO K. and others [HCED 1/2004] [HCED 2/2004] [HCED 4/2004]	(a)	Whether payments from the deceased to her children out of the proceeds of sale of her Taiwan property amounted to gifts inter vivos;	Court of First Instance	Date of hearing not yet fixed
	(b)	Whether the gifts, if established, fell within the normal expenditure exemption; and
	(c)	Whether some payments made by the two children of the deceased, allegedly for settling the deceased's living expenses, were deductible from the gifts received from the deceased.
CHAN CHEUNG S.C. [HCMP 1635/2004]	Whether sums allegedly being rental income collected by the deceased on behalf of the appellant & others, and sums allegedly being reimbursement of the various expenditures incurred for the deceased, were deductible from the cash gifts received from the deceased.		Court of First Instance	Date of hearing not yet fixed.
SHING L.C. [HCED 1/2007]	Whether only half of the amount due to the deceased from a family company and half share of the joint property are subject to duty.		Court of First Instance	The appeal was heard on 4 June 2008 and has been dismissed.

Cases Finalized Pending Publication or Cases Not Yet Finalized :-
Relating to Stamp Duty Ordinance

Cases finalized, pending publication :-

Taxpayer's Name	Issues under Appeal	Court	Current Position
-	-	-	-

Cases not yet finalized :-

Taxpayer's Name	Issues under Appeal	Court	Current Position
-	-	-	-

Note : The headnote(s) is/are in PDF format which can be opened by using the Adobe Acrobat Reader 5.0 or above and Adobe Asian Fonts Packs which are available free at the Adobe Systems Incorporated website.