Hong Kong Case Law: Decisions & Judgments

Topic

Additional assessment

Legal area

Court

16 Nov 2007

THE COMMISSIONER OF INLAND REVENUE v. CHIA TAI CONTI - HONG KONG LTD

Citation

THE COMMISSIONER OF INLAND REVENUE v. CHIA TAI CONTI - HONG KONG LTD
Court

District Court
Case number

DCTC9755/2006

The court entered summary judgment for the Plaintiff because the Commissioner’s certificate under s75(3) established the amount due and s75(4) precludes the Defendant from raising objections to the tax in these recovery proceedings; allegations of delay under s64(2) did not justify a stay and did not constitute a defence to recovery under s71 and s75.
30 Jun 2006

LAM SOON TRADEMARK LTD v. COMMISSIONER OF INLAND REVENUE

Citation

LAM SOON TRADEMARK LTD v. COMMISSIONER OF INLAND REVENUE
Court

Court of Final Appeal
Case number

FACV29/2005

An assessor may make additional assessments under s.60 notwithstanding that original assessments were made under ss.15 and 21A and became final under s.70, because the proviso to s.70 preserves the power to correct assessments that were at less than the proper amount; further, omission by an assessor to deduct outgoings and expenses does not render an additional assessment void—such deductions must be advanced by the taxpayer through objection or appeal.
17 Jan 2006

THE COMMISSIONER OF INLAND REVENUE v. COMMON EMPIRE LTD

Citation

THE COMMISSIONER OF INLAND REVENUE v. COMMON EMPIRE LTD
Court

Court of First Instance
Case number

HCIA1/2004

Computation of profit or loss (a statement of loss) is not an 'assessment' under sections 59, 60 and 62 of the Inland Revenue Ordinance; statements of loss are administrative and may be revisited to determine their effect on later years; the Commissioner validly revised the carried forward loss so as to remove an improperly carried forward loss and lawfully issued an additional assessment within the six-year limitation of section 60; the Board erred in treating the computation of loss as an assessment and in holding the Commissioner exceeded powers.
2 Dec 2005

NAM TAI TRADING CO LTD v. COMMISSIONER OF INLAND REVENUE

Citation

NAM TAI TRADING CO LTD v. COMMISSIONER OF INLAND REVENUE
Court

Court of First Instance
Case number

HCAL80/2004

The application was dismissed because the Commissioner lawfully applied the IRD holdover policy (DIPN 6) and reached different, reasonable conclusions for the two years based on materially different evidence of recoupment; the partial unconditional holdover and conditional holdover with TRC requirement for HK$4,420,000 were lawful under s71(2); there was no irrationality, failure to give adequate reasons, error of law or legitimate expectation warranting relief.
7 Sept 2004

THE COMMMISSIONER OF INLAND REVENUE v. YAU LAI MAN, AGNES t/a L.M. YAU & CO

Citation

THE COMMMISSIONER OF INLAND REVENUE v. YAU LAI MAN, AGNES t/a L.M. YAU & CO
Court

Court of First Instance
Case number

HCIA3/2004

Computations of loss issued by an assessor do not constitute 'assessments' for purposes of ss60 and 70 of the IRO because an assessment presupposes a positive tax liability; accordingly the 19 January 2001 notices for 1995/96 and 1997/98 were valid (either original or valid additional assessments within s60 and permitted by the s70 proviso) and the Board erred in holding otherwise and in applying the Reasonableness Test absent an agreement; appeal allowed with costs to appellant.

Hong Kong Case Law

THE COMMISSIONER OF INLAND REVENUE v. CHIA TAI CONTI - HONG KONG LTD

LAM SOON TRADEMARK LTD v. COMMISSIONER OF INLAND REVENUE

THE COMMISSIONER OF INLAND REVENUE v. COMMON EMPIRE LTD

NAM TAI TRADING CO LTD v. COMMISSIONER OF INLAND REVENUE

THE COMMMISSIONER OF INLAND REVENUE v. YAU LAI MAN, AGNES t/a L.M. YAU & CO