Hong Kong’s revenue commissioner to appeal Nice Cheer Investment ruling
21 November 2012
Joe Dalton
Hong Kong’s highest court will rule on the tax treatment of unrealised gains from trading investments after the Court of Appeal granted leave to the Inland Revenue Department (IRD) commissioner to appeal its decision in the Nice Cheer Investment case.
In granting leave to appeal, the court said it is satisfied the three questions presented by the commissioner are worthy of consideration by the Court of Final Appeal.
The commissioner’s questions:
· is an increase in value above its acquisition cost of unsold stock-in-trade, which is reflected in a trader’s accounts drawn up in accordance with standard accounting practice, to be taken into account when ascertaining the assessable profits of the trader under section 14 of the Inland Revenue Ordinance (Cap 112)(IRO)?
· is there a general principle of profits tax that profits derived from stock in trade are only assessable to tax under the IRO if they result from a...
This article is available to subscribers and current trialists of International Tax Review only. Please log in or subscribe for access to the rest of the article.
Alternatively take a free trial, giving you 7 days of access.
Subscribe now
This article is available to subscribers only. To read the rest of this article please subscrbe.
Subscribe
Free trial
This article is available to trialists and subscribers only. Please take a free 7 day trial to read the rest of the article.
Free trial