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.