Skip to main content
Skip to content
GovHK Trandition Chinese Simplified Chinese Background A A A Search Search Site Map Contact Us

Level Double-A conformance, W3C WAI Web Content Accessibility Guidelines 2.0

Web Accessibility Recognition Scheme
Mobile / Accessible Version IconMobile / Accessible Version Printer View IconPrinter View RSS Icon RSS
  Home > Publications and Press Releases > Advance Ruling Cases > Advance Ruling Case No. 24

Advance Ruling Case No. 24


1. The provisions of the Ordinance

  This ruling applies in respect of section 18E of the Inland Revenue Ordinance.

  back to top


2. Background

(a) Company A and Company B ("the applicants") were incorporated in Hong Kong and they commenced business after 1 April 1974.
(b) The Applicants make up their accounts to 31 March annually.
(c) The Applicants are associated companies and have substantial investments in subsidiaries incorporated in PRC. The subsidiaries in PRC are required to use 31 December as their accounting year end.

  back to top


3. The arrangement 

(a) The Applicants will change the accounting date from 31 March to 31 December in the year of assessment 2005/2006.
(b) The reason put forward by the Applicants for the change of accounting date is for administrative reasons and to reduce the problems arising on preparation of consolidated accounts due to different accounting year end date amongst the group companies.

  back to top


4. The ruling

(a) The Commissioner will adopt the nine-month period from 1 April 2005 to 31 December 2005 as the basis period of the Applicants for the year of assessment 2005/2006.
(b) The assessable profits of the Applicants for the year of assessment 2004/2005 will not be recomputed as a result of the change of their accounting date from 31 March to 31 December.

  back to top


5. The period for which the ruling applies

  This ruling applies to the Applicants for the years of assessment 2004/2005 and 2005/2006.

 

  back to top


6. The material assumptions in respect of a future event or any other matter made by the Commissioner

  There are no assumptions made by the Commissioner.

  back to top


7 . Date of ruling issued 

  4 October 2005.

 

 

back to top