Singapore Cement Manufacturing v Comptroller of Income Tax: Capital Allowance for Cement Silo
Singapore Cement Manufacturing Company (Private) Limited appealed against the Comptroller of Income Tax's decision to disallow accelerated capital allowance for a cement silo constructed in 2013. The High Court of Singapore, General Division, heard the appeal, concerning whether the silo should be classified as a 'plant' under s 19A of the Income Tax Act. The court dismissed the appeal, affirming the Income Tax Board of Review's finding that the silo was a building and not a plant.
1. Case Overview
1.1 Court
General Division of the High Court1.2 Outcome
Appeal Dismissed
1.3 Case Type
Tax
1.4 Judgment Type
Judgment
1.5 Jurisdiction
Singapore
1.6 Description
Appeal regarding accelerated capital allowance for a cement silo. The court held that the silo was a building, not a plant, and dismissed the appeal.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Comptroller of Income Tax | Respondent | Government Agency | Decision Upheld | Won | Bjorn Lee Long Jin of Inland Revenue Authority of Singapore (Law Division) Timothy Tan Ding Yuan of Inland Revenue Authority of Singapore (Law Division) |
| Singapore Cement Manufacturing Company (Private) Limited | Appellant | Corporation | Appeal Dismissed | Lost |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Choo Han Teck | Judge of the High Court | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Bjorn Lee Long Jin | Inland Revenue Authority of Singapore (Law Division) |
| Timothy Tan Ding Yuan | Inland Revenue Authority of Singapore (Law Division) |
| Vikna Rajah | Rajah & Tann Singapore LLP |
| Koh Chon Kiat | Rajah & Tann Singapore LLP |
4. Facts
- Singapore Cement Manufacturing Company (Private) Limited is in the business of importing cement.
- The company constructed a cement silo in 2013.
- The company applied for accelerated capital allowance under s 19A of the Income Tax Act for the silo.
- The Comptroller of Income Tax rejected the company's claim.
- The Income Tax Board of Review dismissed the company's appeal.
- The silo is used for the storage and distribution of cement.
- The silo has a capacity of 24,000 tons.
5. Formal Citations
- Singapore Cement Manufacturing Co (Pte) Ltd v Comptroller of Income Tax, Tax Appeal No 10 of 2022, [2023] SGHC 57
6. Timeline
| Date | Event |
|---|---|
| Silo constructed | |
| Appellant applied for advance tax ruling | |
| Grounds of Decision made in Income Tax Board of Review Appeal No 3 of 2019 | |
| Judgment reserved | |
| Judgment issued |
7. Legal Issues
- Classification of Asset as Plant or Building
- Outcome: The court held that the silo was a building and not a plant.
- Category: Substantive
- Related Cases:
- [2011] 1 SLR 1044
8. Remedies Sought
- Accelerated capital allowance under s 19A of the Income Tax Act
9. Cause of Actions
- No cause of actions
10. Practice Areas
- Tax Law
- Tax Appeals
11. Industries
- Manufacturing
- Construction
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| ZF v Comptroller of Income Tax | Court of Appeal | Yes | [2011] 1 SLR 1044 | Singapore | Cited as the leading decision on whether an asset is a plant, establishing that it is a question of fact. |
| Schofield v R&H Hall | N/A | Yes | (1974) 49 TC 538 | United Kingdom | Cited as an example of what other jurisdictions consider to be a plant. |
| Inland Revenue Commissioners v Barclay, Curle & Co Ltd | N/A | Yes | [1969] 1 WLR 675 | United Kingdom | Cited as an example of what other jurisdictions consider to be a plant. |
| Commissioner of Inland Revenue v Waitaki International Ltd | N/A | Yes | [1990] 3 NZLR 27 | New Zealand | Cited to support the argument that the Silo should be treated as an indivisible whole. |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Income Tax Act (Cap 134, 2014 Rev Ed) | Singapore |
| Section 81(2) of the Income Tax Act 1947 | N/A |
| Section 81(2) of the Income Tax Act | N/A |
| Section 108 of the ITA | N/A |
| Section 19A of the ITA | N/A |
15. Key Terms and Keywords
15.1 Key Terms
- Capital allowance
- Cement silo
- Plant
- Building
- Income Tax Act
- Comptroller of Income Tax
- Income Tax Board of Review
15.2 Keywords
- Tax appeal
- Capital allowance
- Cement silo
- Plant vs building
- Singapore
- Income Tax Act
17. Areas of Law
| Area Name | Relevance Score |
|---|---|
| Income taxation | 95 |
| Capital allowance | 90 |
| Taxation | 80 |
| Industrial Building Allowance | 30 |
| Administrative Law | 20 |
| Contract Law | 10 |
16. Subjects
- Taxation
- Capital Allowances
- Construction Law