30 Oct 2025
CHAPMAN DEVELOPMENT LTD v. COMMISSIONER OF INLAND REVENUE
- Citation
- [2025] HKCA 956
- Court
- Court of Appeal
- Case number
- CACV450/2024
The Court upheld the Board and trial judge: the taxpayer failed to discharge the evidential burden to prove an agreement to vary the written Management Agreement by conduct; the Management Fees payable under the written agreement were deductible but the Transaction was entered into for the sole or dominant purpose of obtaining a tax benefit within s.61A, and under the Alternative Hypothesis the production‑management activities would be ancillary to Hong Kong trading receipts and would not change the source of assessable profits; accordingly the appeal was dismissed.