In Time for Thanksgiving: The Court of Final Appeal Awards Nice Cheer to the Taxpayer
21 November 2013
Mayer Brown JSM Legal Update
On 12 November 2013, the Court of Final Appeal handed down a victory for the taxpayer in Nice Cheer Investment Limited v. Commissioner of Inland Revenue FACV 23/2012. The Court clarified once and for all the relation between commercial methods of accounting and the statutory provisions of tax law. The Court also re-affirmed the general principle that while profits can only be taxed when they are actually earned and realised, the taxpayer may still make provision for unrealised losses when calculating its profits tax liability.