CHANGI AIRPORT GROUP (SINGAPORE) PTE LTD v COMPTROLLER OF INCOME TAX

[2024] SGHC 281 High Court (General Division) 1 November 2024 • HC/TA 4/2024 • 19 min read

5 cases cited (4 SG, 1 foreign)

Catchwords

Revenue Law — Income taxation — Capital allowance

Practice Areas

Revenue Law

Judges (1)

Choo Han Teck Delivered

Counsel (7)

Inland Revenue Authority of Singapore (Law Division) Firm WongPartnership LLP Firm Bjorn Lee Long Jin Counsel Respondent Flora Koh Swee Huang Counsel Respondent Goh Ziluo Counsel Appellant Tan Kay Kheng Counsel Appellant Tan Shao Tong Counsel Appellant

Parties (2)

Changi Airport Group (Singapore) Pte Ltd Appellant Comptroller of Income Tax Respondent

Case Significance

Changi Airport Group (Singapore) Pte Ltd v Comptroller of Income Tax [2024] SGHC 281 was a tax appeal in the General Division of the High Court (Tribunal Appeal No 4 of 2024) decided by Choo Han Teck J on 1 November 2024, arising from Income Tax Board of Review Appeal Nos 21 to 23 of 2016 and a Grounds of Decision delivered on 7 June 2024. The appellant, Changi Airport Group (Singapore) Pte Ltd, was incorporated in Singapore and appointed in 2009 under the Civil Aviation Authority of Singapore Act 2009 as the successor company for the airport undertaking of the Civil Aviation Authority of Singapore, and has been the licensed aerodrome operator of Changi Airport. The dispute concerned capital allowance claims under s 19A of the Income Tax Act (Cap 134, 2008 Rev Ed) for the Years of Assessment 2011, 2012 and 2013, in respect of capital expenditure on two runways, various taxiways, and aprons, on the basis that they were "plant" within the meaning of s 19A.

Summary

Changi Airport Group (Singapore) Pte Ltd, the licensed operator of Changi Airport, appealed against a decision of the Income Tax Board of Review concerning its claims for capital allowances under section 19A of the Income Tax Act in respect of capital expenditure on two runways, taxiways and aprons. The Comptroller of Income Tax had treated those assets as "structures" rather than "plant" and disallowed the capital allowance claims, and the central issue was whether the assets qualified as "plant". The General Division of the High Court, per Choo Han Teck J, held that the Board's decision was not unreasonable and disclosed no error of law, affirmed the Board's finding, and dismissed the appeal.

What did Changi Airport Group (Singapore) Pte Ltd v Comptroller of Income Tax [2024] SGHC 281 concern?

Decided by Choo Han Teck J, the case concerned capital allowance claims under s 19A of the Income Tax Act (Cap 134) for Years of Assessment 2011 to 2013, over whether two runways, taxiways and aprons at Changi Airport were "plant" within the meaning of s 19A.

Why did Changi Airport Group appeal to the High Court in [2024] SGHC 281?

The appeal (Tribunal Appeal No 4 of 2024) arose from Income Tax Board of Review Appeal Nos 21 to 23 of 2016 and a Grounds of Decision dated 7 June 2024, concerning capital allowances under s 19A of the Income Tax Act for runways, taxiways and aprons.