3 Dec 1999
YICK FUNG ESTATES LTD v. THE COMMISSIONER OF INLAND REVENUE
- Citation
- YICK FUNG ESTATES LTD v. THE COMMISSIONER OF INLAND REVENUE
- Court
- Court of Appeal
- Case number
- CACV313/1998
Court held that s18E should be construed in light of legislative history and the presumption that profits tax is annual; Commissioner is not entitled under s18E to adopt a basis period exceeding 12 months for businesses commenced before 1 April 1974. However, the change of accounting date was a "transaction" caught by s61A and, on an objective assessment of the s61A factors (notably timing and result), the change was entered into for the dominant purpose of obtaining a tax benefit; accordingly the Commissioner validly counteracted that benefit under s61A and could assess the relevant profits,…