4 Dec 2007
COMMISSIONER OF INLAND REVENUE v. HONGKONG INTERNATIONAL TERMINALS LTD
- Citation
- COMMISSIONER OF INLAND REVENUE v. HONGKONG INTERNATIONAL TERMINALS LTD
- Court
- Court of Final Appeal
- Case number
- FACV17/2007
The Court held that the introduction of Strategic and the circular borrowing were introduced for the sole or predominant purpose of obtaining a tax benefit by enabling larger interest deductions; accordingly the Commissioner was entitled under s.61A to counteract that tax benefit by disallowing interest deductions of HITL in excess of the net loan proceeds actually received by the group; the assessments on HITL were confirmed and the appeal against Finance was dismissed.