OrbitaxDecision that interest expenses incurred on loans for purposes of dividend payment deductible
|Approved Changes|Hong Kong
The Hong Kong Court of Final Appeal issued its decision in Zeta Estates Limited v. Commissioner of Inland Revenue on 29 March 2007 and held that interest on shareholder's loans to fund the dividend payments was deductible for profit tax purposes.
(a) Facts. Zeta Estates Limited (ZEL) was a joint venture engaged in the development and trade of real estate in Hong K…
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