Tan Hee Liang v Chief Assessor: Property Tax Assessment & Annual Value
Tan Hee Liang appealed against the Chief Assessor's decision, which was upheld by the Valuation Review Board, regarding the annual value assessment of his commercial unit. The High Court, presided over by Andrew Ang J, dismissed the appeal, holding that contributions to the sinking fund and special levy are related to the common property and should not be excluded from the gross rental in determining the annual value. The court reasoned that these contributions primarily benefit the subsidiary proprietor (landlord) rather than the tenant.
1. Case Overview
1.1 Court
High Court1.2 Outcome
Appeal dismissed with costs.
1.3 Case Type
Tax
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
Appeal regarding property tax assessment. The court held that contributions to the sinking fund and special levy are related to the common property.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Tan Hee Liang | Appellant | Individual | Appeal dismissed | Lost | Tan Hee Joek |
| Chief Assessor | Respondent | Government Agency | Decision upheld | Won | Julia Mohamed |
| Comptroller of Property Tax | Respondent | Government Agency |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Andrew Ang | Judge | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Tan Hee Joek | Drew & Napier LLC |
| Julia Mohamed | Inland Revenue Authority of Singapore |
4. Facts
- Tan Hee Liang owns a commercial unit in City Plaza.
- The property was let to a tenant at a monthly rental of $4,000.
- Tan Hee Liang pays quarterly contributions to a management fund, sinking fund, and a special levy.
- The Chief Assessor excluded the contribution towards maintenance but not those towards the sinking fund and the special levy.
- The Valuation Review Board upheld the assessment of the Chief Assessor.
- The special levy was collected over a period of three years for external upgrading works.
5. Formal Citations
- Tan Hee Liang v Chief Assessor and Another, OS 2274/2006, [2007] SGHC 210
6. Timeline
| Date | Event |
|---|---|
| OS 2274/2006 filed | |
| Judgment reserved | |
| Judgment issued |
7. Legal Issues
- Annual Value Assessment
- Outcome: The court held that the Chief Assessor was correct in not excluding contributions towards the sinking fund and special levy from the gross rental.
- Category: Substantive
- Sub-Issues:
- Exclusion of sinking fund contributions
- Exclusion of special levy contributions
- Related Cases:
- [1959-1986] SPTC 1
- [1940] 2 KB 543
- [2002] 4 SLR 844
- [2007] 2 SLR 580
- [2006] 4 SLR 404
8. Remedies Sought
- No remedies sought
9. Cause of Actions
- No cause of actions
10. Practice Areas
- Tax Law
- Property Law
11. Industries
- Real Estate
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Chartered Bank v The City Council of Singapore | High Court | Yes | [1959-1986] SPTC 1 | Singapore | Cited for the principle that the cost of providing services by the landlord ought not to be included as though they were in respect of the letting. |
| Bell Property Trust Ltd v Hampstead Assessment Committee | English Court of Appeal | Yes | [1940] 2 KB 543 | England and Wales | Cited for the principle that the cost to the landlord of providing services is deductible from the gross payments made by the tenants for the purpose of arriving at the gross value. |
| BCH Retail Investment Pte Ltd v Chief Assessor | High Court | Yes | [2002] 4 SLR 844 | Singapore | Cited for the principle that advertising and promotion contributions by tenants are excluded in the ascertainment of annual value. |
| BCH Retail Investment v Chief Assessor | Court of Appeal | Yes | [2007] 2 SLR 580 | Singapore | Cited for the principle that only elements related to rent or letting can be included in the annual value of any given property. |
| Management Corporation Strata Title Plan Nos 1298 and 1304 v Chief Assessor and Comptroller of Property Tax | Court of Appeal | Yes | [2006] 4 SLR 404 | Singapore | Cited to determine whether spaces in a shopping complex were exigible to property tax. |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Property Tax Act (Cap 254, 2005 Rev Ed) Section 2(1) | Singapore |
| Property Tax Act (Cap 254, 2005 Rev Ed) Section 2(7) | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Annual value
- Gross rental
- Sinking fund
- Special levy
- Maintenance fund
- Strata lot
- Common property
- Property tax
- Chief Assessor
- Valuation Review Board
15.2 Keywords
- Property tax
- Annual value
- Sinking fund
- Special levy
- Strata title
- Singapore
- Real estate
- Commercial property
16. Subjects
- Property Tax
- Valuation
- Strata Titles
17. Areas of Law
- Revenue Law
- Property Tax
- Strata Title Law