Hong Kong Case Law: Decisions & Judgments

Topic

Ascertainment of profits

Legal area

Court

22 Sept 2005

CHOW JIH YIM WILSON v. GLOBAL REGENCY ELECTRONICS LTD

Citation

CHOW JIH YIM WILSON v. GLOBAL REGENCY ELECTRONICS LTD
Court

Court of First Instance
Case number

HCLA21/2005

The Court held that the correct implied term required the performance bonus to be calculated by reference to the net profits of the company ascertained up to the date of termination of employment (31 March 2003); the Labour Tribunal erred in finding the claimant had not discharged the burden of proof and in holding the bonus should be based on year‑end pro‑ration. Judgment entered for claimant in the sum of $578,065 with interest and costs.
27 Nov 1998

SECAN LTD. v. COMMISSIONER OF INLAND REVENUE

Citation

SECAN LTD. v. COMMISSIONER OF INLAND REVENUE
Court

Court of First Instance
Case number

HCIA3/1998

The court held that capitalisation of interest in the appellants' commercial accounts did not, on the agreed facts, establish that the interest had already been deducted for tax purposes in the earlier years; the accounts and tax computations showed no such deduction in the profit and loss or prior assessments, and s.16(1)(a) permits deduction when interest is incurred with resulting losses carried under s.19C(4); the Board erred in treating accounting capitalisation as equivalent to a statutory deduction and in refusing the appellants' claim.
26 Apr 1985

BANQUE NATIONAL DE PARIS HONG KONG BRANCH v. COMMISSIONER OF INLAND REVENUE

Citation

BANQUE NATIONAL DE PARIS HONG KONG BRANCH v. COMMISSIONER OF INLAND REVENUE
Court

Court of Appeal
Case number

CACV129/1984

The Court held the 'interest' credited to head office on retained Hong Kong branch profits was not deductible because the bank, as the legal person chargeable under s.14, could not incur a liability to itself; r.3(2) of the Rules governs the method of ascertainment only and cannot displace the substantive deduction conditions in s.16 of the Inland Revenue Ordinance.

Hong Kong Case Law

CHOW JIH YIM WILSON v. GLOBAL REGENCY ELECTRONICS LTD

SECAN LTD. v. COMMISSIONER OF INLAND REVENUE

BANQUE NATIONAL DE PARIS HONG KONG BRANCH v. COMMISSIONER OF INLAND REVENUE