Hong Kong Case Law: Decisions & Judgments

Topic

Capital v revenue expenditure

Legal area

Court

27 May 2025

MTR CORPORATION LTD v. COMMISSIONER OF INLAND REVENUE

Citation

[2025] HKCFI 2220
Court

Court of First Instance
Case number

HCIA2/2024

Leave to appeal was granted because competing, arguable contractual constructions of the Relevant Provisions raise questions of law with a reasonable prospect of success; the court will permit appeal on Q1, Q3, Q4 (rephrased), Q5 and Q6 but refused leave on Q2 as it merely converts the Board’s conclusion into a question of law and is not a proper question. The merits were not finally decided; leave was granted to allow substantive resolution of contested legal issues.
10 Oct 2017

KWP QUARRY CO LTD v. INLAND REVENUE BOARD OF REVIEW

Citation

KWP QUARRY CO LTD v. INLAND REVENUE BOARD OF REVIEW
Court

Court of First Instance
Case number

HCAL102/2016

The applicant’s proposed question was not a proper, sufficiently specific question of law for a case stated; on the merits the Board’s factual findings supported that the overburden removal costs were capital expenditure conferring lasting infrastructural benefit and staged removal for practical reasons did not convert them into revenue expenditure; accordingly the application to compel a case stated was dismissed as plainly and obviously unarguable.
13 Dec 1995

Wharf Properties Limited v. Commissioner of Inland Revenue

Citation

Wharf Properties Limited v. Commissioner of Inland Revenue
Court

Court of Appeal
Case number

CACV204/1994

Interest payable on money borrowed to acquire a redevelopment site constitutes expenditure of a capital nature under s17(1)(c) of the Inland Revenue Ordinance and is not deductible under s16(1)(a); characterization of interest requires inquiry into the purpose for which the loan was obtained; interest becomes deductible only when the asset is completed or actually producing chargeable income.

Hong Kong Case Law

MTR CORPORATION LTD v. COMMISSIONER OF INLAND REVENUE

KWP QUARRY CO LTD v. INLAND REVENUE BOARD OF REVIEW

Wharf Properties Limited v. Commissioner of Inland Revenue