30 Nov 2009
SHUI ON CREDIT CO LTD v. COMMISSIONER OF INLAND REVENUE
- Citation
- SHUI ON CREDIT CO LTD v. COMMISSIONER OF INLAND REVENUE
- Court
- Court of Final Appeal
- Case number
- FACV1/2009
The Court held that (1) the Commissioner was entitled, in reviewing objections and on appeal, to rely on ss.16 and 17 to disallow the claimed deductions notwithstanding that the original assessments were expressed to be under s.61A; (2) the $606.2m recorded as "deferred expenditure" was in substance a one-off capital payment to acquire an income stream (a chose in action) and therefore expenditure of a capital nature not deductible under s.17(1)(c); and (3) s.61A requires a statutory tax benefit to be present before it can be engaged (i.e. it cannot be applied where the scheme simply did not…