Clifford Chance
Hong Kong Court of Appeal considers whether taxpayer receipt is liable to profits tax
5 September 2018
The Hong Kong Court of Appeal has handed down an important decision on whether monies received by a taxpayer pursuant to a redevelopment agreement should be considered "capital" or "revenue" in nature. The decision – on which the judges were divided - comes shortly after another Court of First Instance ruling in which a taxpayer was granted permission to appeal against whether sums paid to secure mobile wireless spectrum should be considered as capital or revenue.
