23 Dec 1996
Hung Yee-shun v. Director of Lands
- Citation
- Hung Yee-shun v. Director of Lands
- Court
- Lands Tribunal
- Case number
- LDLR19/1995
Under s.10(2)(d) the applicant was entitled to compensation to restore his business position; having found the applicant unable to relocate, the Tribunal applied total extinguishment. Accepting bank-statement based reconstructed profits (as adjusted by the respondent's accountant) produced an average annual profit around HKD 1,250,000, deducting profit rent HKD 50,000 gives a base profit HKD 1,200,000. Applying a multiplier of 5 and capitalising at a 9% rate over five years (factor 3.9) produced goodwill of HKD 4,680,000, which was awarded. The discount rate must reflect business/property ret…