Hong Kong’s revenue commissioner to appeal Nice Cheer Investment ruling
21 November 2012
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
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 locked content, available to current subscribers or trialists.
- Current subscribers or trialists - Please log in to view this article in full.
- New users - Please take a free 7 day trial.
- Expired subscribers or trialists - Please subscribe to gain immediate full access.
If you think you've received this message in error, please contact your account manager, Nick Burroughs:
Email: firstname.lastname@example.org, Tel: +44 (0)207 779 8379
Subscribe today to gain full access to International Tax Review.
Take a free trial now and gain 7 days of full access to International Tax Review.