Authors
The Court of Appeal recently handed down three tax decisions with respect to: taxation of unrealised profits; attributing knowledge of a director to the taxpayer company; and the continuance of tax appeals by way of case stated.
The decisions confirm (1) unrealised gains are not chargeable to profits tax, (2) the knowledge of fraudulent directors is attributed to the taxpayer company for the purposes of the Inland Revenue Ordinance (the "IRO") by reason of the application of the primary and special rules of attribution, and (3) the constitutionality of section 69 of the IRO, which requires an appeal from the Board of Review to proceed by way of case stated.
The decisions confirm (1) unrealised gains are not chargeable to profits tax, (2) the knowledge of fraudulent directors is attributed to the taxpayer company for the purposes of the Inland Revenue Ordinance (the "IRO") by reason of the application of the primary and special rules of attribution, and (3) the constitutionality of section 69 of the IRO, which requires an appeal from the Board of Review to proceed by way of case stated.
Downloads –
Related Capabilities
Latest Perspectives
-
July 152022
Timing, team, supervision, and work product
Investigations Lifecycle Insights Podcast
Stay up-to-date on our perspectives
Subscribe to Email