9 Sept 2005
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 First Instance
- Case number
- HCIA8/2004
The court held the Site II Agreement did have the effect of conferring a tax benefit because the interposition of the wholly owned Taxpayer converted proceeds of redevelopment that exceeded market value into purported land cost, thereby reducing taxable profits; having considered the s61A(1) factors objectively and globally the dominant purpose was to enable a tax benefit; the Balance Consideration is not deductible under s16 as it was an appropriation of profits or payment to acquire the opportunity to earn profits rather than an expense incurred in producing them. The Board erred in law and…