15 Jul 2009
COMMISSIONER OF INLAND REVENUE v. DATATRONIC LTD
- Citation
- COMMISSIONER OF INLAND REVENUE v. DATATRONIC LTD
- Court
- Court of Appeal
- Case number
- CACV275/2008
The Court held that the source of taxable profits is determined by the profit‑producing transactions themselves; DSC carried on manufacturing on its own account and sold to the taxpayer, the taxpayer's profit arose from resale in Hong Kong, antecedent mainland activities were incidental, DIPN 21 is a non‑binding concession and could not justify apportionment; accordingly the Board of Review's conclusions that profits were partly sourced in the Mainland and that a 50:50 apportionment applied were wrong and were reversed.