ICBC subsidiary recovers tax indemnity from pre-IPO exercise

Derek J Y Chan, led by Bernard Man SC and instructed by Lau, Horton & Wise LLP, acted for the Plaintiff, ICBC International Wealth Investment Ltd, a subsidiary of the ICBC Group, in a claim for indemnification from the Defendant of profits tax liability of HK$28,860,875 together with its expenses and losses under a tax indemnity deed executed by the Defendant in relation to a restructuring exercise which followed a pre-IPO investment by the Plaintiff. The disputed issues include the proper construction of the tax indemnity deed and whether the Plaintiff was liable for profits tax assessed by the Inland Revenue Department.

After a 6-day trial, Deputy High Court Judge Norman Nip found in favour of the Plaintiff and awarded the sum of HK$28,860,875 together with interest and indemnity costs.

The Judgment can be found here.