13 Feb 2007
HONGKONG INTERNATIONAL TERMINALS LTD v. COMMISSIONER OF INLAND REVENUE
- Citation
- HONGKONG INTERNATIONAL TERMINALS LTD v. COMMISSIONER OF INLAND REVENUE
- Court
- Court of First Instance
- Case number
- HCIA15/2005
The Board erred in law in holding that 'no real money' was raised by the Strategic Notes and that they were artificial and fictitious; the Notes were legally issued and capable of producing real funds and interest was potentially deductible under s.16; s.61A can cover deductible interest as a 'tax benefit' but factual determinations on sole or dominant purpose under s.61A are for the Board and must be reconsidered without the unsustainable 'no real money' premise. The appeals are allowed and the matters remitted to the Board for redetermination consistent with this judgment.