27 Dec 2017
PCCW-HKT TELEPHONE LTD AND ANOTHER v. THE SECRETARY FOR COMMERCE AND ECONOMIC DEVELOPMENT AND ANOTHER
- Citation
- PCCW-HKT TELEPHONE LTD AND ANOTHER v. THE SECRETARY FOR COMMERCE AND ECONOMIC DEVELOPMENT AND ANOTHER
- Court
- Court of Final Appeal
- Case number
- FACV11/2017
The Court held that the Telecommunications Ordinance does not permit inclusion of profit elements (including notional tax and dividends) in licence fee calculations; budgeting for intentional profits to be transferred to general revenue is ultra vires s7 of the TO, and the TFO does not authorize using its surplus provisions to expand the statutory power to impose fees beyond cost recovery; further contingency provision is unlawful absent a demonstrated real risk that existing reserves are inadequate.