Hong Kong Case Law: Decisions & Judgments | LexChat

Hong Kong Case Law

Assessments

  • 24 Jul 2009

    NGAI LIK ELECTRONICS CO LTD v. THE COMMISSIONER OF INLAND REVENUE

    Citation
    NGAI LIK ELECTRONICS CO LTD v. THE COMMISSIONER OF INLAND REVENUE
    Court
    Court of Final Appeal
    Case number
    FACV29/2008

    Court held that once irrelevant parts of the Board's 'Scheme' were stripped away a viable narrower scheme remained limited to the year-end intra-group price-fixing between Ngai Lik and Din Wai Electronics which could engage s61A, but s61A only applied to 1993/94-1995/96; however the Commissioner misused s61A(2) by assessing arbitrarily (treating 50% of offshore affiliates' manufacturing profits as Ngai Lik's) which did not rationally counteract the tax benefit, so the additional assessments (1991/92-1995/96) were annulled and the case remitted for properly founded fresh assessments for 1993/9…

  • 19 May 2008

    COMMISSIONER OF INLAND REVENUE v. HIT FINANCE LTD

    Citation
    COMMISSIONER OF INLAND REVENUE v. HIT FINANCE LTD
    Court
    Court of Final Appeal
    Case number
    FACV8/2007

    The Court held that interest paid by HITL on amounts exceeding the US$587,000,000 actually borrowed by the group must be disallowed, and therefore the assessments on HITL as increased by the Board of Review under s.68(8)(a) IRO are to be confirmed; subsequent borrowings by other group companies do not permit HITL to claim the same interest deductions.

  • 19 May 2008

    COMMISSIONER OF INLAND REVENUE v. HONGKONG INTERNATIONAL TERMINALS LTD

    Citation
    COMMISSIONER OF INLAND REVENUE v. HONGKONG INTERNATIONAL TERMINALS LTD
    Court
    Court of Final Appeal
    Case number
    FACV9/2007

    The Court allowed the Commissioner s appeal against HITL and confirmed the Board of Review s increased assessments because the deductions for interest attributable to sums in excess of the US$587 million actually borrowed were not allowable; subsequent borrowings by other group companies do not entitle HITL to deduct interest on the same borrowings, and the Board s increased assessments must be confirmed under s.68(8)(a).

  • 5 Dec 2006

    THE COMMISSIONER OF INLAND REVENUE v. COMMON EMPIRE LTD

    Citation
    THE COMMISSIONER OF INLAND REVENUE v. COMMON EMPIRE LTD
    Court
    Court of Appeal
    Case number
    CACV83/2006

    A statement of loss issued by the Commissioner is an administrative document and not an 'assessment' within the meaning of the Inland Revenue Ordinance; therefore the six year bar under section 60 applicable to assessments does not prevent the Commissioner from revising statements of loss and treating losses as not established when later computing taxable profits, and taxpayers must be able to prove losses when seeking to carry them forward even after six years.