Jun 2014, Issue 7
Court clarified taxpayers' right to correct an assessment
In the Good Mark Industrial Limited v CIR case, the court held that section 70A of the Inland Revenue Ordinance is intended to have a narrow scope and the taxpayer could not correct, under that section, any error or omission for the year of assessment concerned by making a section 70A application in respect of a particular assessment raised for the same year.
In addition, taxpayers should be mindful that where a protective additional assessment for a year of assessment is raised by the Inland Revenue Department pursuant to a particular issue, the taxpayer's right to object to that additional assessment is limited to the fresh tax liability created under that assessment, any pre-existing tax liabilities arising out of the other earlier assessment(s) for the same year cannot be revisited after the expiration of the one-month objection period for the assessment(s) and the statutory six-year time bar period for that year. Other issues of Hong Kong Tax News Flash
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