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Asia Pacific Tax Notes 2016 Asian Tax and Advisory Webcast Series

Hong Kong Tax News Flash 

Jun 2012, Issue 6

Unrealised gains from stock-in-trade revaluation are not "profits" chargeable to tax

The Court of Appeal ("COA") handed down its judgment in the Nice Cheer case on 19 June 2012. The COA dismissed the Commissioner's appeal and upheld the lower count's judgment that unrealised gains from fair market value revaluation of the taxpayer's trading securities recognised in the financial statements are not "profits" for Hong Kong profits tax purposes. This News Flash provides a summary of the COA's judgment and shares our observations on the implications of the case for taxpayers.

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Reynold Hung
China South and Hong Kong Tax Leader
Hong Kong
Tel: +[852] 2289 3604 Email