4 Dec 2007
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
The Court held that the profit-sharing sale to the wholly owned subsidiary did have the effect of conferring a tax benefit under s.61A because it reduced the group's tax by enabling larger deductions than market value would have allowed, that the dominant purpose of the chosen price formula was to obtain that tax benefit, and that the Commissioner validly could assess on the alternative hypothesis of market value under s.61A(2)(b); appeal allowed and assessment confirmed.