2014 Self reading materials - Important cases

The profit from the letting of property arises where

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: s: The profit from the rendering of services is from the place those services are rendered. The profit from the manufacture of goods is from the place those goods were manufactured. The profit from the letting of property arises where the property is located. The profit from the lending of money arises at the place where the money is lent. The profit from dealing in commodities has its source where the contracts of purchase and sale are effected. CIR v.HK-TVB International Ltd. (1992) PC CIR Facts: HK-TVB made or acquired films or videos in HK-TVB films Chinese dialects Chinese HK-TVB granted rights to TVBI (its 100% owned HK-TVB rights HK subsidiary) to use the copyrights outside HK, copyrights including the exclusive rights to sub-licence its entitlement entitlement Sub-licence agreements signed both in HK & overseas overseas Payments of the sub-licence fee was made in HK TVBI case TVBI High Court and Privy Council: TVBI was a Privy TVBI HK-based co. carrying on business in HK, its acquisition in HK of the rights from TVB-HK to exhibit & sub-license films & programmes to overseas customers were the most important factors in the earning of the profits concerned. Profits from sub-licensing arrangements were held as taxable. taxable. Court of Appeal: focus on the exploitation of Court focus the rights outside HK not taxable TVBI case, PC TVBI The proper approach is to ascertain: proper – what were the operations which produced the what operations relevant profits & relevant – Where those operations took place. The relevant business of TVBI was the The relevant exploitation of film rights exercisable overseas & it was a business carried out in overseas HK HK Wardley Investments Services (Hong Kong) Ltd (1992) (Hong Facts: T managed investment portfolios for its clients its It appointed overseas brokers to purchase & sell shares & securities for its clients its Commissions were payable by its clients to overseas brokers to T received rebates...
View Full Document

This document was uploaded on 03/23/2014.

Ask a homework question - tutors are online