Final appeal Hong Kong`s court rules property development revenues are capital not income

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Hong Kong’s Court of Final Appeal has defined that a business’s revenues arising from disposition of redeveloped plots of land should be classed as capital and are thus not chargeable to profits tax (Perfekta v Inland Revenue, 2019 HKCFA 25). The taxpayer in the case had owned a factory in Kowloon, and later partnered with a developer to redevelop the land for commercial use