Hong Kong Case Law: Decisions & Judgments | LexChat

Hong Kong Case Law

Intention to trade

  • 11 Apr 2025

    CAC INTERNATIONAL LTD v. COMMISSIONER OF INLAND REVENUE

    Citation
    [2025] HKCFI 1366
    Court
    Court of First Instance
    Case number
    HCIA4/2022

    The Board of Review correctly conducted a de novo assessment of the evidence and, having assessed badges of trade and objective circumstances (frequency and intensity of transactions, short holding periods, financing and profits), correctly found the appellant acquired the properties with the intention of disposing of them for profit; any isolated use of the phrase ‘true and only reasonable conclusion’ did not demonstrate the application of an erroneous standard of proof and did not vitiate the Board’s substantive findings. The appeal is dismissed.

  • 4 Sept 1990

    BEAUTILAND Co. LTD. v. COMMISSIONER OF INLAND REVENUE

    Citation
    BEAUTILAND Co. LTD. v. COMMISSIONER OF INLAND REVENUE
    Court
    Court of Appeal
    Case number
    CACV202/1989

    On the facts found by the Board of Review there was sufficient evidence to conclude Beautiland acquired the Rostock shares with an intention to turn them to profitable account (i.e. as trading stock); the date of acquisition is the relevant date for assessing intention and valuation for tax; the Board was entitled to apply the badges of trade and to characterize the transaction as an adventure in the nature of trade.