12 Nov 2013
NICE CHEER INVESTMENT LTD v. COMMISSIONER OF INLAND REVENUE
- Citation
- NICE CHEER INVESTMENT LTD v. COMMISSIONER OF INLAND REVENUE
- Court
- Court of Final Appeal
- Case number
- FACV23/2012
By statutory construction of the Inland Revenue Ordinance (including s14(1) and s18B(1)) and established tax principles, unrealised increases in value of trading stock recorded under the new accounting standards are not assessable as profits; accounting standards preparing financial statements do not, without clear statutory provision, convert unrealised gains into taxable profits and the taxpayer was entitled to exclude unrealised profits from tax computations.