Pan United Marine Ltd v Chief Assessor: Property Tax Assessment of Floating Dry Docks
Pan United Marine Ltd appealed against the Chief Assessor's decision to include three floating dry docks in the property tax assessment of its shipyard located at 33 Tuas Crescent. The High Court, presided over by Lee Seiu Kin J, dismissed the appeal, holding that the floating dry docks fell within the definition of 'building' under the Property Tax Act and were sufficiently annexed to the land to be considered part of the property for assessment purposes. The court also determined that the floating dry docks did not qualify as 'machinery' exempt from assessment under the Act.
1. Case Overview
1.1 Court
High Court1.2 Outcome
Appeal dismissed.
1.3 Case Type
Tax
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
Appeal regarding property tax assessment of floating dry docks. The court determined the docks were 'buildings' and part of the land, thus taxable.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Chief Assessor | Respondent | Government Agency | Assessment upheld | Won | Julia Mohamed of Inland Revenue Authority of Singapore |
| Pan-United Marine Ltd | Appellant | Corporation | Appeal dismissed | Lost |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Lee Seiu Kin | Judge | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Julia Mohamed | Inland Revenue Authority of Singapore |
| Ong Sim Ho | Ong Sim Ho |
4. Facts
- Pan United Marine Ltd leased five plots of land from Jurong Town Corporation.
- The property includes a shipyard and a concrete batching plant.
- Three floating dry docks were berthed on Tuas Bay adjacent to the property.
- The floating dry docks were hinged to pile-like structures fixed to the seabed.
- Access to each floating dry dock was via a ramp connected to the land.
- The floating dry docks were used to hold ships for repairs.
- The appellant had a Temporary Occupation Licence for the use of the seabed.
5. Formal Citations
- Pan United Marine Ltd v Chief Assessor, OM 47/2004, [2007] SGHC 21
6. Timeline
| Date | Event |
|---|---|
| First floating dry dock commissioned. | |
| Second floating dry dock commissioned. | |
| Third floating dry dock commissioned. | |
| Case filed (OM 47/2004). | |
| Judgment reserved. | |
| Judgment delivered. |
7. Legal Issues
- Definition of 'Building' under Property Tax Act
- Outcome: The court held that the floating dry docks fell within the definition of 'dock' and therefore 'building' under the Act.
- Category: Substantive
- Sub-Issues:
- Interpretation of 'structure erected on land'
- Inclusion of 'dock' in the definition
- Related Cases:
- [1993] 3 SLR 489
- Whether Floating Dry Docks are 'Machinery'
- Outcome: The court held that the floating dry docks did not fall within the meaning of 'machinery' in s 2(2) of the Act.
- Category: Substantive
- Assessment of Floating Dry Docks as Part of the Land
- Outcome: The court held that there was sufficient annexation of the floating dry docks to the Property and that their location outside the property boundary did not prevent their inclusion in the assessment.
- Category: Substantive
- Sub-Issues:
- Sufficient annexation to the land
- Location outside the property boundary
- Related Cases:
- [1861-73] All ER 227
8. Remedies Sought
- Reversal of property tax assessment
9. Cause of Actions
- Appeal against property tax assessment
10. Practice Areas
- Tax Law
- Property Assessment
11. Industries
- Marine
- Construction
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Chief Assessor & Comptroller of Property Tax v Van Ommeren Terminal (S) Pte Ltd | High Court | Yes | [1993] 3 SLR 489 | Singapore | Cited for the interpretation of the definition of 'building' in s 2(1) of the Property Tax Act, specifically regarding the inclusion of items listed in the second limb of the definition, irrespective of whether they are structures erected on land. |
| Regional Director, Employees' State Insurance Corporation v Highland Coffee Works | Supreme Court | Yes | [1991] 3 SCC 617 | India | Cited to support the interpretation that the words 'and includes' in the second limb of a definition enlarge the scope encompassed by the first limb. |
| Holland v Hodgson | N/A | Yes | [1861-73] All ER 227 | England | Cited for the test to determine whether an item is sufficiently annexed to the land to form part of the land, focusing on the degree and object of annexation. |
| Gebrueder Buehler AG v Peter Chi Man Kwong & Ors | Court of Appeal | Yes | [1988] SLR 24 | Singapore | Cited for adopting the test in Holland v Hodgson regarding annexation to land. |
| People’s Park Chinatown Development Pte Ltd (in liquidation) v Schinder Lifts (S) Pte Ltd | N/A | Yes | [1993] 1 SLR 591 | Singapore | Cited for adopting the test in Holland v Hodgson regarding annexation to land. |
| Rudd (valuation officer) v Cinderella Rockerfellas Ltd | English Court of Appeal | Yes | [2003] 1 WLR 2423 | England | Cited for the principle that a vessel docked adjacent to occupied land can be rated if it enhances the value of the land. |
| Felgate (VO) v Lotus Leisure Enterprises Ltd | Lands Tribunal | Yes | [2000] RA 89 | England | Cited for the principle that a floating restaurant moored at a dockside was rateable because it was placed on the land and enjoyed with it with a degree of permanence. |
| Aspinden Holdings Ltd v Chief Assessor and Comptroller of Property Tax | High Court | Yes | [2006] SGHC 72 | Singapore | Cited to address the argument that there is a difference between the Singapore property tax regime and the UK rating system. |
| B.P. (Singapore) Ltd v Chief Assessor | Valuation Review Board | Yes | [1959-86] SPTC 86 | Singapore | Cited for including expenses incurred on adjacent land necessary for the benefit of the assessed property. |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Property Tax Act (Cap 254, 1997 Rev Ed) | Singapore |
| Section 2(1) Property Tax Act (Cap 254, 1997 Rev Ed) | Singapore |
| Section 6(1) of the Act | Singapore |
| Section 2(2) of the Act | Singapore |
| Interpretation Act (Cap 1) (1985 Rev Ed) | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Floating dry docks
- Property tax
- Annual value
- Building
- Machinery
- Annexation
- Assessment
- Shipyard
- Tuas Bay
15.2 Keywords
- Property tax
- Floating dry docks
- Shipyard
- Assessment
- Singapore
- Valuation
17. Areas of Law
| Area Name | Relevance Score |
|---|---|
| Revenue Law | 90 |
| Property Law | 85 |
| Property Tax Assessment | 75 |
| Statutory Interpretation | 60 |
16. Subjects
- Property Tax
- Valuation
- Statutory Interpretation