Clifford Chance

The Commissioner's power to raise assessment on a new basis after the expiry of the limitation period confirmed by Court of Final Appeal in Aviation Fuel Supply Company

16 January 2015

Further to the decision of the Court of Appeal (CA) in Aviation Fuel Supply Company v Commissioner of Inland Revenue [2013] 4 HKLRD 463, which we have discussed in our client briefing issued on 21 December 2012, the Court of Final Appeal (CFA) in its recent decision (FACV 14/2013, 15 December 2014) has confirmed that in the event a taxpayer lodges an appeal under section 67 of the Inland Revenue Ordinance (Cap. 112) (the IRO) to the Court of First Instance (or the appellate Court by further appeal), the Court will have the power to make any assessment which the Commissioner was empowered to make when he determined the assessment and is not confined to deciding whether the assessment that was made had been made on the right basis.

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