Hong Kong Ordinances

INLAND REVENUE ORDINANCE - SECT 64

Objections

(Past version on 30/06/1997).

PART XI

OBJECTIONS AND APPEALS (Amended 26 of 1969 s. 33)

(1) Any person aggrieved by an assessment made under this Ordinance may, by
notice in writing to the Commissioner, object to the assessment; but no such
notice shall be valid unless it states precisely the grounds of objection to
the assessment and is received by the Commissioner within 1 month after the
date of the notice of assessment: (Amended 2 of 1971 s. 41; 52 of 1993 s. 10;
24 of 2003 s. 8) Provided that-

   (a)  if the Commissioner is satisfied that owing to absence from Hong Kong,
        sickness or other reasonable cause, the person objecting to the
        assessment was prevented from giving such notice within such period,
        the Commissioner shall extend the period as may be reasonable in the
        circumstances; (Amended 7 of 1986 s. 12)

   (b)  where any assessment objected to has been made under section  59 (3)
        in the absence of any return required under section 51, no notice of
        objection against such assessment shall be valid unless, in addition
        to such notice being valid in accordance with the foregoing provisions
        of this subsection, the return required as aforesaid has been made
        within the period provided by this subsection for objecting to the
        assessment or within such further period as the Commissioner may
        approve for the making of such return;

   (c)  where the assessment is a reassessment of the tax due from a person
        having the effect of either increasing or reducing that person's
        liability to tax, the person so reassessed shall have no further right
        of objection than he would have had if the reassessment had not been
        made except to the extent to which, by reason of the reassessment, a
        fresh liability in respect of any particular is imposed on him or an
        existing liability in respect of any particular is increased or
        reduced. (Replaced 2 of 1971 s. 41)

(1A) For the purposes of subsection (1), where a person chargeable to tax is
assessed under section 59(2)(b) or 60(1) in circumstances that, if the person
had no other income, property or profits chargeable to tax under this
Ordinance, the assessment would have been made under section  59 (3)-

   (a)  the provisions of proviso (b) to subsection (1) shall apply to any
        objection made against that assessment to the extent to which that
        person has failed to comply with section 51; and

   (b)  no notice of objection against such assessment shall be valid unless
        and until that person has complied with section 51. (Added 52 of 1993
        s. 10)

(2) On receipt of a valid notice of objection under subsection (1) the
Commissioner shall consider the same and within a reasonable time may confirm,
reduce, increase or annul the assessment objected to, and for the purpose of
discharging his functions under this subsection may, by notice in writing,
require the person giving the notice of objection to furnish such particulars
as the Commissioner may deem necessary with respect to the matters which are
the subject of the assessment and to produce all books or other documents in
his custody or under his control relating to such matters, and may summon any
person who in his opinion is able to give evidence respecting the assessment
to attend before him and may examine such person on oath or otherwise. Where
the Commissioner proposes to examine any person on oath under this subsection,
he shall, by prior notice in writing, afford a reasonable opportunity to the
person giving the notice of objection or his authorized representative to be
present at such examination.

(3) In the event of the Commissioner agreeing with any person assessed, who
has validly objected to an assessment made upon him, as to the amount at which
such person is liable to be assessed, any necessary adjustment of the
assessment shall be made.

(4) In the event of the Commissioner failing to agree with any person
assessed, who has validly objected to an assessment made upon him, as to the
amount at which such person is liable to be assessed, the Commissioner shall,
within 1 month after his determination of the objection, transmit in writing
to the person objecting to the assessment his determination together with the
reasons therefor and a statement of the facts upon which the determination was
arrived at, and such person may appeal therefrom to the Board of Review as
provided in section 66.

(5) The Commissioner shall for the purpose of this section have the powers
granted under section 4(1)(d), (e), (f) and (g) of the Commissions 
of Inquiry Ordinance ( Cap 86), subject to the provisions of section 80 of
this Ordinance. (Amended 26 of 1969 s. 34)

(6) Any person, other than the person giving the notice of objection or his
authorized representative, may be allowed by the Commissioner any reasonable
expenses necessarily incurred by him in attending before the Commissioner
under subsection (2).

(7) No objection by a person to a personal assessment on his total income
under Part VII shall-

   (a)  extend the time for making any objection under any other provision of
        this Ordinance;

   (b)  make valid any objection which is otherwise invalid; or

   (c)  authorize the revision of any amount which has been included in the
        total income of an individual pursuant to the provisions of section 
        42 (1), where such amount has been the subject of, or formed a part
        of, any assessment made under Part II, III or IV which has become
        final and conclusive under section 70: (Amended 17 of 1989 s. 17)
Provided that nothing in this paragraph shall operate to prevent an objection
by an individual on the grounds that an amount included in the calculation
under section 42 of his total income as a share of the assessable profits or
losses of a partnership has not been ascertained in accordance with
section 22A. (Replaced 7 of 1975 s. 41) (Added 40 of 1972 s. 7)

(8) Where an individual makes an objection in the circumstances described in
the proviso to subsection (7)(c), such objection shall be deemed to be an
objection by all the partners as to the share of assessable profits or losses
ascertained under section 22A and any determination or agreement made under
this section as to such ascertainment shall be binding on all the partners.
(Added 7 of 1975 s. 41)

(9) For the purposes of subsection (1) where a person is chargeable to
salaries tax under section 10(3)(a), the spouse of that person, shall have,
subject to this subsection, the same right to object as has the person
assessed, but any such objection shall be limited to the manner in which the
assessable income or net assessable income of such spouse is to be determined,
the entitlement of such spouse to any allowance under Part V or other matters
to which that spouse could have objected had that spouse been the person so
chargeable. (Added 43 of 1989 s. 24)

(10) Where an objection to which subsection (9) applies is made-

   (a)  the powers of the Commissioner under subsection (2) shall include the
        power to annul such assessment and make an assessment against the
        person objecting;

   (b)  subsection (3) shall not apply but-

        (i)    where the Commissioner agrees with both the spouse who has
               objected and his or her spouse as to the amount at which either
               of them is liable to be assessed, any necessary adjustment of
               the assessment shall be made; and

        (ii)   where the Commissioner fails to come to any such agreement as
               is referred to in subparagraph (i), such agreement shall be
               deemed to be a failure to agree for the purposes of subsection
               (4), and the reference in that subsection to the person
               objecting shall be construed as a reference to the person
               objecting under paragraph (a) and his or her spouse, with the
               consequence that either or both of them may appeal to the
               Board of  Review. (Added 43 of 1989 s. 24) (Replaced 35 of 1965
               s. 29)