Hong Kong Case Law: Decisions & Judgments | LexChat

Hong Kong Case Law

Carrying on business in hong kong

  • 20 Dec 2024

    RE CHENG JONATHAN

    Citation
    [2024] HKCFI 3669
    Court
    Court of First Instance
    Case number
    HCB1888/2024

    The debtor failed to comply with the statutory demand and did not demonstrate good reasons to file an out‑of‑time Notice under r.68; the purported appeal was not prosecuted diligently and cannot impede the petition; the Money Lenders Ordinance did not on the evidence apply to the loan; the debtor failed to rebut the Petitioner's evidence of domicile/ordinary residence and having carried on business in Hong Kong; substituted service was accepted and any set aside would be futile — accordingly a bankruptcy order was properly made and the debtor's applications to file late material and to set as…

    • Statutory demand
    • Service by substituted service
    • Rule 68 extension of time
    • Notice of intention to oppose
    • Domicile and ordinary residence
    • Carrying on business in hong kong

  • 30 Aug 2024

    TOUAX CONTAINER INVESTMENT LTD v. THE COMMISSIONER OF INLAND REVENUE

    Citation
    [2024] HKCFI 2242
    Court
    Court of First Instance
    Case number
    HCIA1/2023

    Ground 1 dismissed: Board did not err in finding that the taxpayer carried on a business in Hong Kong based on consistent use of the Hong Kong address and documentary evidence. Grounds 2–4 allowed: Board's reasoning on source of profits was insufficiently reasoned and relied on irrelevant or unclear inferences as to profit‑producing operations; matter remitted under s.69AA(1)(a)(ii) IRO to a freshly constituted three‑person Board for rehearing on whether trading and leasing profits were sourced in Hong Kong for the six years in issue.

    • Source of profits
    • Carrying on business in hong kong
    • Section 14 iro
    • Operations test
    • Remitter
    • Burden of proof

  • 20 Apr 2022

    NEWFAIR HOLDINGS LTD v. COMMISSIONER OF INLAND REVENUE

    Citation
    [2022] HKCFI 1133
    Court
    Court of First Instance
    Case number
    HCIA1/2021

    The Board's conclusions were legally erroneous because it focused on incidental or antecedent factors (operation of a Hong Kong bank account, legal title, and the fact of interposition for fiscal efficiency) rather than the profit-producing operations, which the court found were negotiated, concluded and carried out outside Hong Kong; accordingly Newfair did not carry on business in Hong Kong for s14 purposes and its profits were offshore; the Board's decision was set aside and leave to appeal granted.

    • Source of profits
    • Carrying on business in hong kong
    • Section 14 iro
    • Leave to appeal

  • 16 Dec 2019

    RE CHEN MEI HUAN also known as LIU CHEN MEI HUAN also known as LIU MEI HUAN CHEN

    Citation
    [2019] HKCFI 3028
    Court
    Court of First Instance
    Case number
    HCB1660/2019

    Petitioner failed to prove on the evidence that the debtor carried on a separate business in Hong Kong during the three years prior to the petition; injections of funds and involvement in company affairs did not establish personal carrying on of business in the relevant period; consequently the court lacked jurisdiction under s4(1)(c)(ii) and the petition was dismissed.

    • Jurisdiction under section 4 of the bankruptcy ordinance
    • Carrying on business in hong kong
    • Separate legal personality
    • Offer to secure debt under section 6d(3)

  • 17 Dec 2013

    RE SIMERAY JANNICK JACQUES

    Citation
    RE SIMERAY JANNICK JACQUES
    Court
    Court of First Instance
    Case number
    HCB8016/2012

    The court held the statutory demand and petition were properly served and, on the evidence (shareholding, directorship, contractual terms, audited accounts and payments), the debtor carried on business in Hong Kong through JM Concepts Ltd during the relevant three year period, thereby establishing jurisdiction under s 4(1)(c)(ii) of the Bankruptcy Ordinance; no valid defence to the petition was made, so a bankruptcy order was made against the debtor.

    • Service of process
    • Jurisdiction
    • Carrying on business in hong kong
    • Statutory demand
    • Bankruptcy order