Hong Kong Case Law: Decisions & Judgments | LexChat

Topic

General anti-avoidance (section 61a)

Legal area

Court

13 Mar 2008

COMMISSIONER OF INLAND REVENUE v. TAI HING COTTON MILL (DEVELOPMENT) LTD

Citation

COMMISSIONER OF INLAND REVENUE v. TAI HING COTTON MILL (DEVELOPMENT) LTD
Court

Court of Final Appeal
Case number

FACV2/2007

Raising alternative arguments (including the section 16 deductibility issue) on the same evidence was legitimate and did not significantly increase the length or cost of the proceedings; accordingly the general rule that costs follow the event applies and the Commissioner is entitled to her costs in this Court and in the courts below.
13 Feb 2007

HONGKONG INTERNATIONAL TERMINALS LTD v. COMMISSIONER OF INLAND REVENUE

Citation

HONGKONG INTERNATIONAL TERMINALS LTD v. COMMISSIONER OF INLAND REVENUE
Court

Court of First Instance
Case number

HCIA15/2005

The Board erred in law in holding that 'no real money' was raised by the Strategic Notes and that they were artificial and fictitious; the Notes were legally issued and capable of producing real funds and interest was potentially deductible under s.16; s.61A can cover deductible interest as a 'tax benefit' but factual determinations on sole or dominant purpose under s.61A are for the Board and must be reconsidered without the unsustainable 'no real money' premise. The appeals are allowed and the matters remitted to the Board for redetermination consistent with this judgment.