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2012 Unit 5 Profit computation - s

40 change of intention where a trader transfers his

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Unformatted text preview: in his fixed i.e., intention to hold the long-term instead of intention short term, A notional profit/loss (i.e. the market notional value on the date of change of intention less the cost of the asset) will arise. 41 Con’t Con’t BoR in BR 21/76 considered that the BoR BR CIR could assess the notional profit CIR 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 Applicability Wernher Principle in Hong Kong Wernher The applicability of the Sharkey v. The Wernher principle in HK was challenged Wernher 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 The Sharkey Petrotim cases decided on the basis of different legislation from HK; from The CIR had no power to disregard the actual sale The CIR price unless s.61 (an anti-avoidance provision) was s.61 invoked; and invoked; S.14 charged actual profit, not notional profit. S.14 charg...
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