Hong Kong Case Law: Decisions & Judgments | LexChat

Hong Kong Case Law

Profits tax under s14 iro
  • 12 May 2004

    CONSCO TRADING CO LTD v. THE COMMISSIONER OF INLAND REVENUE

    Citation
    CONSCO TRADING CO LTD v. THE COMMISSIONER OF INLAND REVENUE
    Court
    Court of First Instance
    Case number
    HCIA3/2003

    The Court affirmed the Board's application of the operations test and concluded on the facts found that the preponderance of the Taxpayer's profit-generating activities occurred in Hong Kong (sourcing, financing, letters of credit, invoicing and receipts), that Beijing Sanjing was an independent contractor (not the Taxpayer's agent) and Mr Wang represented Beijing Sanjing, and therefore the Taxpayer's profits arose in or were derived from Hong Kong; apportionment was not permitted in the stated case and the appeal was dismissed.