Chief Assessor v Skyventure: Property Tax Assessment of iFly Singapore's Wind Tunnel
The Chief Assessor and Comptroller of Property Tax appealed against the Valuation Review Board's decision regarding the property tax assessment of Skyventure VWT Singapore Pte Ltd's iFly Singapore wind tunnel. The High Court, presided over by Choo Han Teck J, allowed the appeal, holding that the wind tunnel did not fall within the exemption criteria of the Property Tax Act.
1. Case Overview
1.1 Court
High Court of the Republic of Singapore1.2 Outcome
Appeal Allowed
1.3 Case Type
Tax
1.4 Judgment Type
Judgment
1.5 Jurisdiction
Singapore
1.6 Description
Appeal regarding property tax assessment of iFly Singapore's wind tunnel. The court held that the wind tunnel was not exempt under the Property Tax Act.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Chief Assessor | Appellant | Government Agency | Appeal Allowed | Won | Pang Mei Yu of Inland Revenue Authority of Singapore Quek Hui Ling of Inland Revenue Authority of Singapore Shawn Joo Jian Hua of Inland Revenue Authority of Singapore |
| Skyventure VWT Singapore Pte Ltd | Respondent | Corporation | Appeal Dismissed | Lost | |
| Comptroller of Property Tax | Appellant | Government Agency | Appeal Allowed | Won | Pang Mei Yu of Inland Revenue Authority of Singapore Quek Hui Ling of Inland Revenue Authority of Singapore Shawn Joo Jian Hua of Inland Revenue Authority of Singapore |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Choo Han Teck | Judge | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Pang Mei Yu | Inland Revenue Authority of Singapore |
| Quek Hui Ling | Inland Revenue Authority of Singapore |
| Shawn Joo Jian Hua | Inland Revenue Authority of Singapore |
| Tan Hee Joek | Tan See Swan & Co. |
4. Facts
- Skyventure VWT Singapore Pte Ltd owns and operates iFly Singapore.
- iFly Singapore provides a simulated skydiving experience using a vertical wind tunnel.
- The Chief Assessor included the value of the Wind Tunnel in assessing the annual value of the Property.
- The respondent appealed, arguing that the value of the Wind Tunnel should not have been included as it was exempt under s 2(2) of the Property Tax Act.
- The VRB found in favour of the respondent.
- The Chief Assessor and the Comptroller of Property Tax appealed against the majority’s decision.
5. Formal Citations
- Chief Assessor and another v Skyventure VWT Singapore Pte Ltd, Tax Appeal No 7 of 2019, [2020] SGHC 10
6. Timeline
| Date | Event |
|---|---|
| Property tax assessment period began | |
| Property tax assessment period ended | |
| Hearing date | |
| Hearing date | |
| Judgment reserved |
7. Legal Issues
- Interpretation of s 2(2) of the Property Tax Act
- Outcome: The court held that the wind tunnel did not fall within the exemption criteria of s 2(2) of the Property Tax Act.
- Category: Statutory Interpretation
- Sub-Issues:
- Definition of machinery
- Meaning of adapting for sale
- Industrial purpose requirement
- Related Cases:
- [2008] 3 SLR(R) 569
- [2007] 3 SLR(R) 326
- [2008] 2 SLR(R) 724
8. Remedies Sought
- Exemption from property tax
9. Cause of Actions
- Appeal against property tax assessment
10. Practice Areas
- Tax Law
- Property Law
11. Industries
- Tourism
- Leisure
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Pan-United Marine Ltd v Chief Assessor | High Court | Yes | [2008] 3 SLR(R) 569 | Singapore | Cited for the dominant function test in determining the primary purpose of the Wind Tunnel. |
| First DCS Pte Ltd v Chief Assessor | High Court | Yes | [2007] 3 SLR(R) 326 | Singapore | Cited for the object behind s 2(2) which was to encourage investments in plant and machinery for manufacturing, processing and other industrial purposes |
| Chief Assessor v First DCS Pte Ltd | Court of Appeal | Yes | [2008] 2 SLR(R) 724 | Singapore | Cited for the legislative purpose of s 2(2) of the Property Tax Act, which is to promote investments in manufacturing machinery. |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Property Tax Act (Cap 254, 2005 Rev Ed) s 2(2) | Singapore |
| Interpretation Act [Cap 1, 2002 Rev Ed] s 9A | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Wind Tunnel
- Annual Value
- Property Tax
- Machinery
- Industrial Purpose
- Adapting for Sale
15.2 Keywords
- property tax
- wind tunnel
- iFly Singapore
- annual value
- machinery
- tax assessment
17. Areas of Law
| Area Name | Relevance Score |
|---|---|
| Revenue Law | 95 |
| Property Law | 70 |
| Statutory Interpretation | 50 |
16. Subjects
- Tax Law
- Property Law
- Statutory Interpretation