4 Dec 2007
COMMISSIONER OF INLAND REVENUE v. HIT FINANCE LTD
- Citation
- COMMISSIONER OF INLAND REVENUE v. HIT FINANCE LTD
- Court
- Court of Final Appeal
- Case number
- FACV16/2007
The Court held that s.61A applies where features of a transaction (here the introduction of Strategic and the circular borrowing) conferred a tax benefit and were inserted for the sole or predominant purpose of obtaining that benefit; on the facts the Board of Review was entitled to find Strategic was introduced predominantly to secure a tax benefit, so the Commissioner was entitled to disallow interest deductions of Hongkong International Terminals in excess of the net loan proceeds actually received by the group, while assessments on HIT Finance went too far and were dismissed.