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Unformatted text preview: in his
intention to hold the long-term instead of
A notional profit/loss (i.e. the market
value on the date of change of intention
less the cost of the asset) will arise.
Con’t BoR in BR 21/76 considered that the
CIR could assess the notional profit
resulting from the transfer of some unsold
flats and shops to fixed assets by a land
development and investment company.
42 Applicability of Sharkey v
Wernher Principle in Hong Kong
Wernher The applicability of the Sharkey v.
Wernher principle in HK was challenged
in two BoR cases D41/91 and D47/91 in
which the BoR considered that:
which 43 Con’t
Con’t The Sharkey case and Petrotim case were British
cases decided on the basis of different legislation
from The CIR had no power to disregard the actual sale
price unless s.61 (an anti-avoidance provision) was
invoked; S.14 charged actual profit, not notional profit.
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- Spring '13