23 Jun 1998
COMMISSIONER OF INLAND REVENUE v. NATIONAL MUTUAL CENTRE (HK) LTD.
- Citation
- COMMISSIONER OF INLAND REVENUE v. NATIONAL MUTUAL CENTRE (HK) LTD.
- Court
- Court of Appeal
- Case number
- CACV145/1997
The Court held that the subordinated loan created an accrued legal liability to pay interest from the date of the loan notwithstanding contractual postponement of payment; accordingly the interest was "incurred" and "payable" within s.16(1) and, insofar as it was taxable when received, "chargeable" within s.16(2)(c). Therefore the Board’s allowance of the deduction was correct (subject to the effect of statutory repeal of interest tax after 31 March 1989), and the Commissioner’s appeal was dismissed.