Raymond Yeung Tax Consultant former Assessor of Inland Revenue Department 前稅局評稅主任楊輝洪

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Further study on Section 16(1) 

Protecting or defending an asset

The expenditure incurred for protecting or defending an asset which is used for production of assessable profits is deductible.

In the case Morgan versus Tate & Lyle Ltd. 35 TC 367, the company mounted an extensive propaganda campaign intended to prevent nationalization of the whole of the company's trade. The court ruled that the expenditure was for the purpose of the trade. The judge commented that defending a profit earning asset, or all the company's assets, came within the definition of for the purpose of the trade.

 

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香港稅務課程 Practical Taxation Course

教授實用税務及報稅知識

Private tuition of Hong Kong Taxation of Law and Practice

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