Tax Information : Status of Tax Cases

Status of Tax Cases as at 31 December 2009

	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
Datatronic Ltd [CACV 275/2008]	Whether part of the Taxpayer's profits should be treated as offshore profits. [Previous CFI Case No.:HCIA 4/2007]	CA	By a judgment dated 15 July 2009, Commissioner's appeal to CA was allowed.
Nam Tai Trading Co Ltd [CACV 114/2009]	Section 61A - deduction of service fees. [Previous CFI Case No.:HCAL 40/2009]	CA	The Taxpayer's application for a case to be stated was refused by BOR on 22 April 2009. CFI refused to grant the Taxpayer leave to apply for Judicial Review. On 14 October 2009, CA dismissed Taxpayer's appeal against CFI's refusal of Judicial Review.
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.
Indosuez W I Carr Securities Ltd [FACV 2/2008]	Source of brokerage commission and interest income. [Previous CFI Case No.:HCAL 118/2004] [Previous CA Case No.:CACV 57/2006]	CFA	By a consent summons dated 29 August 2008 filed with the CFA, the parties agreed to the finalization of the case on the basis of the BOR decision handed down after the case had been remitted to the BOR with the opinion of the CFI by an order dated 30 January 2002 and a further order dated 24 April 2003.
Ngai Lik Electronics Co Ltd [FACV 29/2008 ]	Section 61A of the IRO and source of profits. [Previous CFI Case No. : HCIA 5/2007] [Previous CA Case No. : CACV 22/2008]	CFA	Taxpayer’s appeal was allowed by CFA in judgment dated 24 July 2009. CFA also ordered that the case be remitted to Commissioner via the Board of Review for issue of fresh assessments in accordance with the judgement.
Shui On Credit Co Ltd [FACV 1/2009]	Deductibility of deferred expenditure : sections 16(1), 17(1) and 61A. [Previous CFI Case No. : HCIA 2/2007] [Previous CA Case No. : CACV 85/2008]	CFA	By a judgment dated 30 November 2009, the Taxpayer's appeal was dismissed by CFA.   For details of the headnote, please click here.

Cases not yet finalized :-

Taxpayer's Name	Issues under Appeal	Court	Current Position
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. Taxpayer has appealed to CA. Date of hearing not yet set.
Lee Yee Shing, Jacky & Yeung Yuk Ching [HCAL 40/2008]	Judicial review on case stated procedure.	CFI	Leave to apply for Judicial Review granted by the Court on 20 April 2009.
Fan Kin-nang &Yau Lai-man	Whether personal assessment was validly issued.	CFI	Appeal leapfrogged to CFI under Section 67 of the Inland Revenue Ordinance and was heard on 29 December 2009.
Mrs Murad, Barbara Ellen, Mrs Ward, Mona Frances, Mr Murad, Mark Basiem and Mr Strickroot, John Carl, the executors of the estate of the late Mr Murad, Mike M(formerly known as Mr Murad, Mohammad Mutaz) [HCIA 1/2009]	Chargeability of termination payment.	CA	By a judgment dated 19 November 2009, Taxpayer's appeal was dismissed by CFI. The Appellant has filed an appeal to CA. Date of hearing not yet fixed.
Chu R. Y. [CACV 203/2008]	Penalty for omission of income. [Previous CFI Case No.:HCIA 7/2007]	CA	By a judgment dated 20 November 2009, Taxpayer's appeal was dismissed by CA.
Fuchs, W. A. H. [CACV 196/2008 ]	Lump sum received upon termination of employment - whether assessable. [Previous CFI Case No.:HCIA 1/2008]	CA	Appeal leapfrogged to CFI under Section 67 of the Inland Revenue Ordinance. By a judgment dated 26 June 2008, the Taxpayer’s appeal to CFI was partially dismissed. Taxpayer’s subsequent appeal and CIR’s cross appeal to CA were heard on 6 March 2009. By a judgment dated 30 October 2009, Taxpayer’s appeal was dismissed and CIR’s cross appeal was allowed by CA. Taxpayer has applied for leave to appeal to CFA.

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.
KAO K. [HCED 1/2004]	Whether payments from the deceased to her son 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.
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.

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.