HSBC vs Chief Assessor: Property Tax Assessment of Plaza Singapura's Annual Value
In HSBC Institutional Trust Services (Singapore) Limited (as Trustee of Capitaland Mall Trust) v The Chief Assessor, the Court of Appeal of Singapore dismissed the appeal by HSBC against the High Court's decision, which affirmed the Chief Assessor's 2008 assessment of the annual value of the subject property, the seventh floor of Plaza Singapura. The court held that the annual value should include the value of the fixtures installed by the tenant, Golden Village Multiplex Pte Ltd, and rejected the argument that the fixtures should be excluded because the tenant was obliged to remove them at the end of the lease.
1. Case Overview
1.1 Court
Court of Appeal of the Republic of Singapore1.2 Outcome
Appeal Dismissed
1.3 Case Type
Tax
1.4 Judgment Type
Ex Tempore Judgment
1.5 Jurisdiction
Singapore
1.6 Description
The Court of Appeal upheld the Chief Assessor's property tax assessment of Plaza Singapura, ruling that tenant-installed fixtures should be included in the annual value.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| The Chief Assessor | Respondent | Government Agency | Appeal Dismissed | Won | Pang Mei Yu of Inland Revenue Authority of Singapore Quek Hui Ling of Inland Revenue Authority of Singapore Lau Sze Leng Serene of Inland Revenue Authority of Singapore |
| HSBC Institutional Trust Services (Singapore) Limited (as Trustee of Capitaland Mall Trust) | Appellant, Applicant | Trust | Appeal Dismissed | Lost |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Andrew Phang Boon Leong | Judge of Appeal | Yes |
| Tay Yong Kwang | Judge of Appeal | No |
| Belinda Ang Saw Ean | Judge | No |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Pang Mei Yu | Inland Revenue Authority of Singapore |
| Quek Hui Ling | Inland Revenue Authority of Singapore |
| Lau Sze Leng Serene | Inland Revenue Authority of Singapore |
| Ong Sim Ho | Drew & Napier LLC |
| Keith Brendan Lam Xun-Yu | Drew & Napier LLC |
| Gan Xin Ci Emma | Drew & Napier LLC |
4. Facts
- HSBC is the trustee of CapitaLand Mall Trust, which owns Plaza Singapura.
- The subject property is the seventh floor of Plaza Singapura.
- The property has been leased to Golden Village Multiplex Pte Ltd since 1999.
- GV spent over $7.8m on fitting-out works, including air-conditioning and cinema equipment.
- The Chief Assessor determined the annual value of the property to be $3,292,000 in 2008.
- The tenancy agreement provides that the tenant is to pay the landlord any increase in property tax.
- The fitting-out works were only 9 years old as of 2008.
5. Formal Citations
- HSBC Institutional Trust Services (Singapore) Ltd (trustee of Capitaland Mall Trust)vChief Assessor, Civil Appeal No 227 of 2018, [2020] SGCA 10
6. Timeline
| Date | Event |
|---|---|
| CapitaLand Mall Trust acquired Plaza Singapura | |
| Property leased to Golden Village Multiplex Pte Ltd as a bare shell | |
| Chief Assessor determined the annual value of the Property | |
| Decision delivered on Valuation Review Board Appeal No 321 of 2010 | |
| Tribunal Appeal No 9 of 2018 | |
| Civil Appeal No 227 of 2018 | |
| Judgment delivered | |
| Tenancy agreement signed |
7. Legal Issues
- Annual Value Assessment
- Outcome: The court held that tenant-installed fixtures should be included in the annual value assessment.
- Category: Substantive
- Sub-Issues:
- Inclusion of tenant's fixtures in annual value
- Application of rebus sic stantibus principle
- Related Cases:
- [2012] 3 SLR 933
- [2006] 4 SLR(R) 521
- [2006] 1 SLR(R) 888
- [2013] 2 SLR 173
- Fixtures vs Chattels
- Outcome: The court determined that the fitting-out works were fixtures.
- Category: Substantive
8. Remedies Sought
- No remedies sought
9. Cause of Actions
- No cause of actions
10. Practice Areas
- Taxation
- Property Assessment
11. Industries
- Real Estate
- Entertainment
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Chief Assessor v HSBC Institutional Trust Services (Singapore) Limited | Singapore High Court | Yes | [2012] 3 SLR 933 | Singapore | Cited regarding the statutory exception in s 2(2) of the Property Tax Act. |
| Aspinden Holdings Ltd v Chief Assessor and another | Court of Appeal | Yes | [2006] 4 SLR(R) 521 | Singapore | Cited for the rebus sic stantibus principle of valuation. |
| Leivest International Pte Ltd v Top Ten Entertainment Pte Ltd | Singapore High Court | Yes | [2006] 1 SLR(R) 888 | Singapore | Cited regarding a landlord-tenant dispute over rent for fixtures. |
| HSBC Institutional Trust Services (Singapore) Limited v Chief Assessor | Court of Appeal | Yes | [2013] 2 SLR 173 | Singapore | Cited regarding the objective inquiry of the rent that a hypothetical tenant can reasonably be expected to pay. |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Property Tax Act (Cap 254, 2005 Rev Ed) | Singapore |
| Rules of Court (Cap 322, R 5, 2014 Rev Ed) | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Annual value
- Property tax
- Fixtures
- Chattels
- Rebus sic stantibus
- Hypothetical tenant
- Fitting-out works
- Bare shell
- Tenant's covenants
15.2 Keywords
- property tax
- annual value
- fixtures
- CapitaLand
- Plaza Singapura
- Singapore
- Chief Assessor
17. Areas of Law
| Area Name | Relevance Score |
|---|---|
| Revenue Law | 95 |
| Property Tax | 90 |
| Annual Value | 85 |
| Property Law | 70 |
16. Subjects
- Property Law
- Tax Law
- Real Estate Valuation