Skyventure VWT v Chief Assessor: Property Tax Exemption & Statutory Interpretation
Skyventure VWT Singapore Pte Ltd appealed against the High Court's decision, which had allowed an appeal by the Chief Assessor and Comptroller of Property Tax against the Valuation Review Board's decision. The case concerned whether the wind tunnel at iFly Singapore qualified for property tax exemption under Section 2(2) of the Property Tax Act. The Court of Appeal dismissed the appeal, finding that the wind tunnel did not meet the criteria for exemption.
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
Judgment
1.5 Jurisdiction
Singapore
1.6 Description
The Court of Appeal examined if iFly Singapore's wind tunnel qualified for property tax exemption under the Property Tax Act. The appeal was dismissed.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Skyventure VWT Singapore Pte Ltd | Appellant, Respondent | Corporation | Appeal Dismissed | Lost | |
| The Chief Assessor | Respondent, Appellant | Government Agency | Appeal Upheld | Won | Pang Mei Yu of Inland Revenue Authority of Singapore (Law Division) Quek Hui Ling of Inland Revenue Authority of Singapore (Law Division) Shawn Joo Jian Hua of Inland Revenue Authority of Singapore (Law Division) |
| Comptroller of Property Tax | Respondent, Appellant | Government Agency | Appeal Upheld | Won | Pang Mei Yu of Inland Revenue Authority of Singapore (Law Division) Quek Hui Ling of Inland Revenue Authority of Singapore (Law Division) Shawn Joo Jian Hua of Inland Revenue Authority of Singapore (Law Division) |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Andrew Phang Boon Leong | Justice of the Court of Appeal | Yes |
| Chao Hick Tin | Senior Judge | No |
| Belinda Ang Saw Ean | Judge of the Appellate Division | No |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Tan Hee Joek | Tan See Swan & Co. |
| Pang Mei Yu | Inland Revenue Authority of Singapore (Law Division) |
| Quek Hui Ling | Inland Revenue Authority of Singapore (Law Division) |
| Shawn Joo Jian Hua | Inland Revenue Authority of Singapore (Law Division) |
4. Facts
- Skyventure VWT Singapore Pte Ltd owns and operates iFly Singapore.
- iFly Singapore is a tourist attraction that provides a simulated skydiving experience.
- The property consists of three vertical concrete columns bridged at the top and the base.
- The wind tunnel consists of wind turbines, a primary diffuser, turning vents, an inlet contractor, and a flight chamber.
- The respondents assessed the whole of the property to property tax, including the value of the wind tunnel.
- The appellant appealed, contending that the value of the wind tunnel should not be included as it was exempt machinery under s 2(2) of the Property Tax Act.
- The High Court found that the legislative purpose of s 2(2) of the Act was to encourage investments in plant and machinery for manufacturing, processing and other industrial purposes.
5. Formal Citations
- Skyventure VWT Singapore Pte LtdvChief Assessor and anotherand another matter, Civil Appeal No 17 of 2020 and Summons No 1 of 2021, [2021] SGCA 40
6. Timeline
| Date | Event |
|---|---|
| Respondents assessed the whole of the Property to property tax. | |
| Valuation Review Board found in the appellant’s favour. | |
| Judge gave his decision on the respondents’ appeal. | |
| Appellant applies in Summons No 1 of 2021 for leave to tender two bundles of documents. | |
| Judgment reserved. | |
| Judgment delivered. |
7. Legal Issues
- Property Tax Exemption
- Outcome: The Court held that the wind tunnel did not qualify for property tax exemption under s 2(2) of the Property Tax Act.
- Category: Substantive
- Statutory Interpretation
- Outcome: The Court applied a purposive approach to interpret the term 'article' in s 2(2) of the Property Tax Act.
- Category: Procedural
- Sub-Issues:
- Purposive approach
- Construction of statute
8. Remedies Sought
- Property tax exemption
9. Cause of Actions
- Appeal against property tax assessment
10. Practice Areas
- Taxation
- Property Law
11. Industries
- Tourism
- Recreation
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Chief Assessor v Skyventure VWT Singapore Pte Ltd | High Court | Yes | [2020] SGHC 10 | Singapore | The High Court allowed the appeal against the decision of the Valuation Review Board, finding that the wind tunnel did not belong to the class of machinery to which s 2(2) of the Act was intended to apply. |
| Skyventure VWT Singapore Pte Ltd v Chief Assessor | Valuation Review Board | Yes | [2019] SGVRB 1 | Singapore | The Valuation Review Board found in the appellant’s favour, holding that the enhanced value given to the Property by the Wind Tunnel ought to be excluded from the Property’s annual value. |
| Chief Assessor and another v First DCS Pte Ltd | Court of Appeal | Yes | [2008] 2 SLR(R) 724 | Singapore | Cited for comparison regarding the interpretation of adapting for sale of any article under s 2(2)(c) of the Act. |
| Li Shengwu v Attorney-General | N/A | Yes | [2019] 1 SLR 1081 | Singapore | Cited for the principle that the terms “any premises” and “any machinery”, as used in the provision, ordinarily refer to “any and all” premises and machinery without any limitation |
| Tan Cheng Bock v Attorney-General | N/A | Yes | [2017] 2 SLR 850 | Singapore | Cited for the framework for adopting a purposive approach in interpreting statutory provisions. |
| Cox v S. Cutler & Sons, Ltd. and Hampton Court Gas Co. | English Court of Appeal | Yes | [1948] 2 All ER 665 | England and Wales | Cited for the broad definition of the word “article”. |
| Longhurst v Guildford, Godalming and District Water Board | House of Lords | Yes | [1963] 1 AC 265 | England and Wales | Cited for the principle that the meaning to be given to the word “article” depends on the relevant statutory context. |
| Bailey v Stoke-on-Trent Assessment Committee and Potteries Electric Traction Company, Limited | N/A | Yes | [1931] 1 KB 385 | England and Wales | Cited for the rationale underlying the English courts’ approach to adopt a generous interpretation of provisions containing the terms ‘make’, ‘alter’ and ‘adapt for sale’. |
| Public Prosecutor v Soil Investigation Pte Ltd | N/A | Yes | [2019] 2 SLR 472 | Singapore | Cited for the principle that the same word may carry different meanings when used in different provisions within the same statute. |
| Pan-United Marine Ltd v Chief Assessor | N/A | Yes | [2008] 3 SLR(R) 569 | Singapore | Cited for the test to determine whether the Wind Tunnel is “machinery” for the purposes of s 2(2) of the Act. |
| Wave House Singapore Pte Ltd v Chief Assessor | Valuation Review Board | Yes | [2016] SGVRB 1 | Singapore | Cited for comparison regarding the interpretation of adapting for sale of any article under s 2(2)(c) of the Act. |
| Madras Electric Supply Corp Ltd v Boarland (Inspector of Taxes) [1955] AC 667 | N/A | Yes | N/A | N/A | Cited for the principle that where the identical expression is used in a statute, and all the more so, where it is used in the same sub-clause of a section in a statute, it should presumptively have the same meaning. |
13. Applicable Rules
| Rule Name |
|---|
| Rules of Court (Cap 322, R 5, 2014 Rev Ed) |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Property Tax Act (Cap 254) | Singapore |
| Interpretation Act (Cap 1) | Singapore |
| Factories Act 1937 (c 67) (UK) | United Kingdom |
| Public Utilities Act (Cap 261, 2002 Rev Ed) | Singapore |
| Factory Acts Extension Act 1867 (c 103) (UK) | United Kingdom |
15. Key Terms and Keywords
15.1 Key Terms
- Wind tunnel
- Property tax
- Annual value
- Machinery
- Exempt machinery
- Simulated skydiving
- Adapting for sale
- Manufacturing process
- Article
15.2 Keywords
- Property tax exemption
- Wind tunnel
- iFly Singapore
- Statutory interpretation
- Annual value
- Machinery
17. Areas of Law
| Area Name | Relevance Score |
|---|---|
| Revenue Law | 90 |
| Property Tax | 85 |
| Annual Value | 75 |
| Property Law | 70 |
| Construction of statute | 65 |
| Statutory Interpretation | 60 |
| Purposive approach | 55 |
16. Subjects
- Tax Law
- Property Law
- Statutory Interpretation