Tax Information : Status of Tax Cases

Status of Tax Cases as at 31 December 2011

	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
Fan Kin Nang & Yau Lai Man [HCIA 9/2009]	Whether personal assessment was validly issued.	CFI	By a judgment dated 4 January 2010, the Taxpayers' appeal was dismissed by CFI.
Yue Yuen Group(8 subsidiaries of Yue Yuen Industrial (Holdings) Limited [HCAL 49/2009]	Judicial review application in respect of alleged ultra vires assessments, failure to issue determinations within a reasonable time, ultra vires and/or unlawful decision on standover of tax.	CFI	By a judgment dated 17 March 2010, the Taxpayers' application to quash the relevant assessments and the Commissioner's holdover decisions was refused. An order was made by CFI that the Commissioner determines the objections as soon as possible and at the latest within 6 months from the date of the judgment. The Taxpayers filed an appeal to CA, which was scheduled to be heard on 14 September 2010. However, the appeal was dismissed on 9 June 2010 by way of a joint application of the Taxpayers and the Commissioner.
Kinco Investment Holding Limited [HCAL 91/2009 ]	Judicial review application in respect of the Commissioner's decision ordering that the tax could be held-over on the condition that a tax certificate be purchased under Section 71 of the IRO.	CFI	Judicial review was heard on 7 September 2010. The Taxpayer's application was dismissed on 20 September 2010. For details of the headnote, please click here.
Sawhney, Subhash Chander [HCIA 1/2006]	Whether share option gains derived by the Taxpayer should be assessed to tax.	CA	Judgment was issued by CFI on 28 April 2006. The Commissioner's appeal was allowed.
Appeal by Liquidator of Moulin Global Eyecare Trading Limited [CACV 285/2009]	Rejection by one of the joint and several liquidators of the Taxpayer of the Commissioner's proof of debt in respect of unpaid Profits Tax. [Previous CFI Case No. : HCCW 471/2005]	CA	By a decision dated 17 December 2009, the Commissioner's appeal under Rule 95 of the Companies (Winding-Up) Rules was allowed. Liquidator's appeal to CA was dismissed by a judgment dated 13 July 2010.
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) [CACV 275/2009]	Chargeability of termination payment. [Previous CFI Case No. : HCIA 1/2009]	CA	By a judgment dated 19 November 2009, the Taxpayer's appeal was dismissed by CFI. The Taxpayer has withdrawn the appeal to CA.
C G Lighting Limited [CACV 119/2010]	Offshore profits claim. [Previous CFI Case No. : HCIA 8/2009]	CA	By a judgment dated 3 May 2010, the Commissioner's appeal to CFI was allowed. The Taxpayer's appeal to CA was dismissed on 7 March 2011. The Taxpayer's application for leave to appeal to CFA was heard by CA on 5 May 2011 and was rejected. The Taxpayer's application to CFA for leave to appeal was heard and dismissed on 24 August 2011.
Lee Yee Shing & Yeung Yuk Ching [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. The Taxpayers' appeal was dismissed.
Fuchs, Walter Alfred Heinz [FACV 22/2009]	Lump sum received upon termination of employment – whether assessable. [Previous CFI Case No. : HCIA 1/2008] [Previous CA Case No. : CACV 196/2008]	CFA	Appeal leapfrogged to CFI under Section 67 of the IRO. By a judgment dated 26 June 2008, the Taxpayer's appeal to CFI was partially dismissed. The Taxpayer's subsequent appeal and the Commissioner's cross appeal to CA were heard on 6 March 2009. By a judgment dated 30 October 2009, the Taxpayer's appeal was dismissed and the Commissioner's cross appeal was allowed by CA. The Taxpayer's appeal to CFA was heard on 17 & 18 January 2011. On 1 February 2011, CFA handed down its judgment dismissing the Taxpayer's appeal. For details of the headnote, please click here.

Cases not yet finalized :-

Taxpayer's Name	Issues under Appeal	Court	Current Position
Tungtex Trading Company Limited [HCIA 7/2009]	Offshore profits claim. The Taxpayer applied under Section 69(4) of the IRO to have the case stated sent back to the Board of Review for amendment.	CFI	By a judgment dated 26 August 2011, CFI dismissed the Taxpayer's application under Section 69(4) of the IRO.
Lee Yee Shing, Jacky & Yeung Yuk Ching [CACV 49/2011]	Judicial review on case stated procedure. [Previous CFI Case No. : HCAL 40/2008]	CA	Leave to apply for Judicial Review was granted by CFI on 20 April 2009. The Judicial Review was heard and dismissed by CFI on 18 January 2011 and 22 February 2011 respectively. The Taxpayers have filed an appeal to CA against CFI judgment. The appeal is scheduled to be heard on 14 & 15 March 2012.
Aviation Fuel Supply Company [CACV 150/2011]	Taxability of a lump sum payment – capital or revenue receipt. [Previous CFI Case No. : HCIA 6/2009]	CA	By a judgment dated 8 July 2011, the Taxpayer's appeal was allowed by CFI. On 5 August 2011, the Commissioner filed a notice of appeal to CA. The Appeal is scheduled to be heard on 13 to 15 November 2012.
Church Body of the Hong Kong Sheng Kung Hui[CACV 41/2010]	Chargeability of share of profits. [Previous CFI Case No. : HCIA 2/2009]	CA	On 23 February 2010, the Taxpayers filed a notice of appeal to CA. Date of hearing not yet set.
Hong Kong Sheng Kung Hui Foundation [CACV 41/2010]	Chargeability of share of profits. [Previous CFI Case No. : HCIA 3/2009]	CA	On 23 February 2010, the Taxpayers filed a notice of appeal to CA. Date of hearing not yet set.
Li & Fung (Trading) Limited [CACV 86/2011]	Offshore profits claim. [Previous CFI Case No. : HCIA 3/2010]	CA	By a judgment dated 18 April 2011, the Commissioner's appeal to CFI was dismissed. On 16 May 2011, the Commissioner filed a notice of appeal to CA. The hearing is scheduled to be heard on 14 & 15 February 2012.
Nice Cheer Investment Limited [CACV 135/2011]	Unrealized gain in respect of shares held for trading [Previous CFI Case No. : HCIA 8/2007]	CA	By a judgment dated 28 June 2011, the Taxpayer's appeal was allowed by CFI. On 26 July 2011, the Commissioner filed a notice of appeal to CA. The hearing is scheduled to be heard on 22 & 23 May 2012.
Chan Chun Chuen [CACV 113/2011]	Judicial review application in respect of the Commissioner's decision to reject the late objection lodged [Previous CFI Case No. : HCAL 76/2010]	CA	The Commissioner filed a notice of appeal to CA on 29 June 2011 against CFI judgement dated 1 June 2011. The hearing is scheduled to be heard on 28 February 2012.
Moulin Global Eyecare Trading Limited (In Liquidation) [CACV 64/2011]	Judicial review application on the Commissioner's refusal to accept late objection under Section 64 of the IRO and refusal to accept Section 70A claim. [Previous CFI Case No. : HCAL 29/2010 ]	CA	By a judgment dated 15 February 2011, CFI decided in favour of the Taxpayer. The Commissioner filed a notice of appeal to CA. The hearing is scheduled to be heard on 2 & 3 February 2012.
Kong Tai Shoes Manufacturing Company Limited [CACV 232/2011]	Judicial review application in respect of alleged ultra vires assessments, failure to issue determinations within a reasonable time, ultra vires and/or unlawful decision on standover of tax. [Previous CFI Case No. : HCAL 34/2011]	CFI	By a judgment dated 30 September 2011, the Applicant's application to quash the relevant assessments and the Commissioner's holdover decisions was refused. An order was made by CFI that the Commissioner determines the Applicant's objections for 1998/99 to 2002/03 by 30 November 2011 and for 2003/04 to 2008/09 by 31 March 2012. The Applicant filed a notice of appeal to CA against the judgment of CFI. The appeal is scheduled to be heard on 20 July 2012.

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
Deceased's name JAN Yun-bor [HCED 1/04] Appellant KAO Kim John	Whether payment 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.
Deceased's name CHAN Chi-cheong [HCMP 1635/04] Appellant CHAN CHEUNG Suk-chun	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.
Deceased's name KUNG WONG Sau-hin [HCED 1/11] Appellant KUNG Kwok-wai David	Whether the assessed value of the deceased's interests in various private companies, NT lots and estate of her predeceased husband was excessive, and whether the debt due by the deceased in the form of promissory note was deductible.	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
-	-	-	-

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