Glengary Pte Ltd v Chief Assessor: Property Tax Assessment & Annual Value of Land Under Construction
Glengary Pte Ltd appealed to the High Court of Singapore against the Chief Assessor's decision regarding the annual value of a plot of land on which The Sail@Marina Bay was built, for the years 2007 and 2008. The central legal issue was whether the Chief Assessor should disregard committed sales of units when assessing the annual value of the land under Section 2(3)(b) of the Property Tax Act. The High Court allowed the appeal, determining that committed sales should be taken into consideration when assessing the annual value.
1. Case Overview
1.1 Court
High Court1.2 Outcome
Appeal Allowed
1.3 Case Type
Tax
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
Glengary appealed against the Chief Assessor's property tax assessment. The court determined the annual value of land under construction, considering committed sales.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Chief Assessor | Respondent | Government Agency | Appeal Dismissed | Lost | Lau Kai Lee of Inland Revenue Authority of Singapore Joyce Chee of Inland Revenue Authority of Singapore |
| Glengary Pte Ltd | Appellant | Corporation | Appeal Allowed | Won |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Lai Siu Chiu | Judge | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Lau Kai Lee | Inland Revenue Authority of Singapore |
| Joyce Chee | Inland Revenue Authority of Singapore |
| Tan Kay Kheng | WongPartnership LLP |
| Tan Shao Tong | WongPartnership LLP |
| Novella Chan | WongPartnership LLP |
4. Facts
- Glengary Pte Ltd acquired a plot of land under the Government Land Sales scheme in 2002.
- The land was used to build a condominium development known as The Sail@Marina Bay.
- Glengary launched the sale of residential units in October 2004 before construction began.
- The Chief Assessor increased the annual value of the property in 2007 and 2008.
- Glengary objected to the increased annual value, which was disallowed.
- The Valuation Review Board decided that the Chief Assessor was entitled to treat the land as vacant land and disregard the committed sales in the valuation.
- The Temporary Occupation Permit for The Sail was issued in 2008 and the Certificate of Statutory Completion in 2009.
5. Formal Citations
- Glengary Pte Ltd v Chief Assessor, Originating Summons No 1075 of 2011, [2012] SGHC 183
6. Timeline
| Date | Event |
|---|---|
| Land acquired by Glengary Pte Ltd on a 99-year lease. | |
| Application submitted to the Urban Redevelopment Authority for provisional permission. | |
| Provisional permission granted by the Urban Redevelopment Authority. | |
| Sale of residential units launched. | |
| Possession granted to the building contractor. | |
| Last residential unit sold. | |
| Chief Assessor issued notice increasing the annual value of the Property. | |
| Temporary Occupation Permit for Phase 1 of The Sail issued. | |
| Temporary Occupation Permit for Phase 2 of The Sail issued. | |
| Certificate of Statutory Completion received for the entire development. | |
| Decision of the Valuation Review Board. | |
| Judgment reserved. |
7. Legal Issues
- Interpretation of Section 2(3)(b) of the Property Tax Act
- Outcome: The court held that committed sales should be taken into consideration when assessing the annual value of the land.
- Category: Substantive
- Sub-Issues:
- Whether committed sales should be disregarded in assessing the annual value of land on which buildings are being erected.
8. Remedies Sought
- Reduction of annual value assessment
- Reversal of costs awarded to the Respondent at the hearing before the VRB
9. Cause of Actions
- Appeal against property tax assessment
10. Practice Areas
- Tax Litigation
- Property Valuation
- Real Estate Law
11. Industries
- Real Estate
- Construction
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Glengary Pte Ltd v Chief Assessor | Valuation Review Board | Yes | [2012] SGVRB 1 | Singapore | The decision of the Valuation Review Board that was appealed against in the current judgment. |
| Spencer v The Commonwealth of Australia | High Court | Yes | (1907) 5 CLR 418 | Australia | Cited for the proposition that all circumstances which might affect the value of the land must be taken into consideration. |
| Hoare v National Trust | Court of Appeal | Yes | (1999) 77 P & CR 366 | England and Wales | Cited for the principle of reality, that all circumstances which exist in reality should be taken into consideration in valuing land, except where not required by statute. |
| Best Origin Ltd v Commissioner of Rating and Valuation | Lands Tribunal | Yes | [2008] HKLT 7 | Hong Kong | Cited for the principle of reality, that all circumstances which exist in reality should be taken into consideration in valuing land, except where not required by statute. |
| Best Origin Ltd v Commissioner of Rating and Valuation | Court of Appeal | Yes | [2010] HKCA 368 | Hong Kong | Cited for the principle of reality, that all circumstances which exist in reality should be taken into consideration in valuing land, except where not required by statute. Approved the decision in [2008] HKLT 7. |
| Trocette Property Co Ltd v Greater London Council | N/A | Yes | [1974] RVR 306 | England and Wales | Cited for the principle of reality, that all circumstances which exist in reality should be taken into consideration in valuing land, except where not required by statute. |
| Federal Commissioner of Taxation v Comber | Federal Court | Yes | (1986) 64 ALR 451 | Australia | Cited for the principle of reality, that all circumstances which exist in reality should be taken into consideration in valuing land, except where not required by statute. |
| East End Dwellings Co Ld v Finsbury Borough Council | House of Lords | Yes | [1952] AC 109 | England and Wales | Cited for the principle that where deeming provisions are in issue, one must treat as real the consequences and incidents that inevitably flow from or accompany that deemed state of affairs. |
| Union of India v Jalyan Udyog | Supreme Court | Yes | AIR 1994 SCC 318 | India | Cited for the principle that where a fiction is created by a provision of law, the court must give full effect to the fiction. |
| Ex parte Walton, In re Levy | Court of Appeal | Yes | (1881) 17 Ch D 746 | England and Wales | Cited for the principle that when a statute enacts that something shall be deemed to have been done, which in fact and truth was not done, the Court is entitled and bound to ascertain for what purposes and between what persons the statutory fiction is to be resorted to. |
| Chief Assessor and another v First DCS Pte Ltd | Court of Appeal | Yes | [2008] 2 SLR(R) 724 | Singapore | Cited for the effect of section 9A(1) of the Interpretation Act. |
| Chief Assessor v Town and City Properties Ltd | High Court | Yes | [1965–1967] SLR(R) 477 | Singapore | Refers to the VRB’s decision that there is no provision in the Ordinance whereby buildings in the course of erection can be assessed. |
| Ean Lian (Pte) Ltd v Chief Assessor | Valuation Review Board | Yes | [1975] 1 MLJ xlvi | Singapore | Cited in support of the proposition that when construction commences on the land and during the progress of construction works, the annual value will continue to be determined on the basis of 5% of the vacant land value. |
| Chief Assessor v Howe Yoon Chong | Court of Appeal | Yes | [1983–1984] SLR(R) 657 | Singapore | Cited for the fundamental principle in valuation that a property must be valued as it in fact stands, ie rebus sic stantibus. |
| Comptroller of Income Tax v GE Pacific Pte Ltd | Court of Appeal | Yes | [1994] 2 SLR(R) 948 | Singapore | Cited for the principle that practice is not law. |
| ACC v Comptroller of Income Tax | Court of Appeal | Yes | [2011] 1 SLR 1217 | Singapore | Cited for the principle that practice is not law. |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Property Tax Act (Cap 254, 2005 Rev Ed) | Singapore |
| Interpretation Act (Cap 1, 2002 Rev Ed) | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Annual value
- Committed sales
- Vacant land
- Property tax
- Government Land Sales scheme
- Statutory interpretation
- Deeming provision
- Rebus sic stantibus
15.2 Keywords
- Property tax assessment
- Annual value
- Land valuation
- Committed sales
- Singapore High Court
17. Areas of Law
| Area Name | Relevance Score |
|---|---|
| Property Tax | 90 |
| Valuation of Property | 60 |
| Property Law | 50 |
| Administrative Law | 30 |
16. Subjects
- Property Tax
- Land Valuation
- Real Estate