28 September, 2011

Cido Car Carrier Service Ltd v. Woori Bank (Hong Kong Branch)

In this recent case, the Court of First Instance confirmed that aforeign tax debt claim cannot be enforced against assets held in Hong Kong. The Hong Kong branch of a Korean bank froze a Hong Kong company's Hong Kong bank account in response to a request from the Korean tax authority. The Hong Kong company, a subsidiary of a Korean company, sought an injunction in Hong Kong to restrain the bank branch from enforcing the Korean tax claim, and to remove the stop on the accounts. The taxpayer prevailed.

Click here to see detail discussion on the implications of the court decision to banks and taxpayers in Hong Kong.

By Andrew Lockhart and Michael Olesnicky