Changi Airport Group v Comptroller of Income Tax: Capital Allowance for Airport Infrastructure
Changi Airport Group (Singapore) Pte Ltd (“CAG”) appealed to the General Division of the High Court against the Comptroller of Income Tax's decision to disallow CAG's claim for capital allowances under Section 19A of the Income Tax Act for capital expenditure on runways, taxiways, and aprons (RTA). The Comptroller argued that the RTA were not 'plant' but 'structures'. The High Court dismissed the appeal, upholding the Comptroller's decision and finding that the RTA functioned primarily as a structure, 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
Changi Airport Group appealed against the Comptroller's decision to disallow capital allowances for runways and taxiways. The court dismissed the appeal, finding the infrastructure to be 'structures'.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Changi Airport Group (Singapore) Pte Ltd | Appellant | Corporation | Appeal Dismissed | Lost | |
| Comptroller of Income Tax | Respondent | Government Agency | Decision Upheld | Won | Bjorn Lee Long Jin of Inland Revenue Authority of Singapore (Law Division) Flora Koh Swee Huang of Inland Revenue Authority of Singapore (Law Division) |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Choo Han Teck | Judge of the High Court | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Tan Kay Kheng | WongPartnership LLP |
| Tan Shao Tong | WongPartnership LLP |
| Goh Ziluo | WongPartnership LLP |
| Bjorn Lee Long Jin | Inland Revenue Authority of Singapore (Law Division) |
| Flora Koh Swee Huang | Inland Revenue Authority of Singapore (Law Division) |
4. Facts
- Changi Airport Group claimed capital allowances for runways, taxiways, and aprons (RTA) under Section 19A of the Income Tax Act.
- The Comptroller of Income Tax disallowed the capital allowance claims, classifying the RTA as 'structures' instead of 'plant'.
- The capital expenditure on the RTA amounted to $272,575,162 across the Years of Assessment 2011, 2012, and 2013.
- The RTA are designed to facilitate the safe landing, taxiing, and take-off of aircraft.
- The RTA includes features like transverse slopes for water drainage and a reinforcing steel mesh for lightning protection.
- The Comptroller granted capital expenditure on specialized systems or aerodrome equipment.
- Some aerodrome equipment is located in terminal buildings, not directly on the RTA.
5. Formal Citations
- Changi Airport Group (Singapore) Pte Ltd v Comptroller of Income Tax, Tribunal Appeal No 4 of 2024, [2024] SGHC 281
6. Timeline
| Date | Event |
|---|---|
| Changi Airport Group appointed as successor company. | |
| Changi Airport Group made claims for capital allowances for Year of Assessment 2011. | |
| Changi Airport Group made claims for capital allowances for Year of Assessment 2012. | |
| Changi Airport Group made claims for capital allowances for Year of Assessment 2013. | |
| Agreed statement of facts dated. | |
| Board's written decision rendered. | |
| Judgment reserved. | |
| Judgment issued. |
7. Legal Issues
- Classification of Assets as Plant or Structure
- Outcome: The court held that the runways, taxiways, and aprons (RTA) were more appropriately classified as 'structures' rather than 'plant'.
- Category: Substantive
- Sub-Issues:
- Interpretation of 'plant' under Section 19A of the Income Tax Act
- Distinction between 'plant' and 'structure' for capital allowance purposes
- Divisibility of Assets
- Outcome: The court held that the RTA and aerodrome equipment were divisible assets.
- Category: Substantive
- Sub-Issues:
- Whether the runways, taxiways, and aprons (RTA) and aerodrome equipment should be considered a single, indivisible asset
8. Remedies Sought
- Reversal of the Comptroller's decision to disallow capital allowances
- Declaration that the RTA qualifies as 'plant' under Section 19A of the Income Tax Act
9. Cause of Actions
- Appeal against the Comptroller of Income Tax's assessment
10. Practice Areas
- Tax Law
- Tax Litigation
11. Industries
- Aviation
- Infrastructure
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 for the principles in determining whether an asset is 'plant' or 'building/structure' for capital allowance purposes. |
| Schofield v R&H Hall | N/A | Yes | (1974) 49 TC 538 | N/A | Cited in relation to the classification of a grain silo as 'plant'. |
| Inland Revenue Commissioners v Barclay, Curle & Co Ltd | N/A | Yes | [1969] 1 WLR 675 | N/A | Cited in relation to the classification of a dry dock as 'plant'. |
| Commissioner of Inland Revenue v Waitaki International Ltd | N/A | Yes | [1990] 3 NZLR 27 | New Zealand | Cited in relation to the classification of cold stores as 'plant'. |
| Comptroller of Income Tax v AQQ | N/A | Yes | [2014] 2 SLR 847 | Singapore | Cited for the principle that whether an asset is a 'plant' is a question of fact and degree. |
| Singapore Cement Manufacturing Co (Pte) Ltd v Comptroller of Income Tax | N/A | Yes | [2023] 5 SLR 1099 | Singapore | Cited for the principle that the Comptroller can classify parts of an asset separately for tax purposes. |
| THM International Import & Export Pte Ltd v Comptroller of Goods and Services Tax | N/A | Yes | [2024] SGHC 97 | Singapore | Cited regarding the assessment of evidence and questions of fact versus questions of law. |
| Yarmouth v France | N/A | Yes | (1887) 19 QBD 647 | N/A | Cited for the principle that a horse can be considered 'plant'. |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Income Tax Act 1947 | Singapore |
| Income Tax Act (Cap 134) | Singapore |
| Section 81(2) of the Income Tax Act 1947 | Singapore |
| Sections 19A(1) and 19A(1B) of the Income Tax Act (Cap 134) | Singapore |
| Civil Aviation Authority of Singapore Act 2009 | Singapore |
| Section 16 of the Income Tax Act | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Capital Allowance
- Plant
- Structure
- Runway
- Taxiway
- Apron
- Aerodrome Equipment
- Income Tax Act
- Divisibility of Assets
15.2 Keywords
- Capital Allowance
- Income Tax
- Changi Airport
- Plant
- Structure
- Runway
- Taxiway
- Apron
17. Areas of Law
| Area Name | Relevance Score |
|---|---|
| Taxation | 90 |
| Income taxation | 80 |
| Revenue Law | 70 |
| Capital allowance | 60 |
| Administrative Law | 30 |
16. Subjects
- Taxation
- Income Tax
- Capital Allowances
- Airport Infrastructure