Hong Kong Case Law: Decisions & Judgments | LexChat

Hong Kong Case Law

Double taxation relief

  • 17 May 2022

    THE COMMISSIONER OF INLAND REVENUE v. LO WA MING PATRICK

    Citation
    [2022] HKCA 710
    Court
    Court of Appeal
    Case number
    CACV235/2021

    The Board erred in law in applying a formula that treated all non‑Hong Kong days as days on which services were rendered outside Hong Kong; the Revenue's Day in, Day out formula based solely on physical presence is not supported by s 8(1A)(c) and may produce arbitrary or unjust results. The correct approach is a time‑based apportionment that treats excluded income as: Income × (outside‑Hong Kong working days + leave days attributable to outside services) ÷ calendar days, with attribution of leave being a question of fact; the matter is remitted to the Board to apply that approach.

  • 14 Apr 2021

    THE COMMISSIONER OF INLAND REVENUE v. LO WA MING PATRICK

    Citation
    [2021] HKCFI 916
    Court
    Court of First Instance
    Case number
    HCIA2/2020

    The Commissioner’s ‘day in, day out’ formula based solely on travel records is inconsistent with sections 8(1) and 8(1A)(c) and produces arbitrary and unjust results; apportionment under s8(1A)(c) must be determined by facts and evidence about where services were rendered (with contractual allocation considered) rather than by mechanical use of presence records; the Board’s fact‑based apportionment method is not inconsistent with s8(1)(a) and income apportioned to weekends and statutory holidays during a secondment may qualify for exclusion. The appeal is dismissed.