Read the full judgment text of CACV 115/2017 on BabelCite. This Court of Appeal judgment was delivered on 21 August 2018 before Hon Cheung JA, Hon McWalters JA, Hon G Lam J.
Civil procedure – leave to appeal – Court of Final Appeal – question of great general or public importance – 'or otherwise' ground – Inland Revenue – stock valuation – trading profits – Board of Review – majority and minority decisions – substitution of minority decision – Nice Cheer Investment Limited v Commissioner of Inland Revenue – Both parties applied for leave to appeal against the Court of Appeal's judgment of 1 June 2018. Perfekta's application raised a question about substituting a minority decision for a majority decision of a board of review, but the court held the question was not engaged because the parties had conducted the appeal on the basis of deciding which view was correct, and the minority view was upheld as the Board's decision. Perfekta also sought leave on the 'or otherwise' ground, but the court declined to deal with it as Perfekta reserved the right to rely on it before the Court of Final Appeal. The Commissioner's application raised a question about whether sections 14 and/or 16 of the Inland Revenue Ordinance invariably require opening and closing stock values for ascertaining chargeable profits. The court found the question not engaged and not reasonably arguable, as it sought to overturn the established principle that income cannot be treated as trading profit without accounting for costs, citing Lord Millett's statement in Nice Cheer Investment Limited. Both applications were dismissed with costs and a certificate for two counsel.
Legal issues: Leave to appeal on question of great general or public importance · Leave to appeal on 'or otherwise' ground · Commissioner's application for leave on stock valuation
Outcome: Both applications for leave to appeal to the Court of Final Appeal are dismissed.
Cited by 6 cases