Changi Airport loses $273m tax break appeal

It was dismissed due to the assets being structures and not tools of trade. 

Changi Airport Group (CAG) has lost its appeal to have a tax break on $273m worth of assets including runways and taxiways. 

Judge Choo Han Teck of the General Division High Court said he dismissed the appeal because the assets were structures and not tools of trade. 

Last 1 November, CAG made claims for capital allowances in 2011, 2012, and 2013 for capital expenditure on the assets, amounting to $272,575,162. The Comptroller of Income Tax and CAG both agreed the assets were designed to facilitate and ensure the safe landing, taxiing and taking off of aircraft. 

Choo said he agreed with the board that the basic function of the assets was as structures, however, he said the focus of the inquiry on the exact operational role of the assets did not extend to how functional or integral they were to CAG’s business. 

He said the function of navigation is primarily performed by the aerodrome equipment, including airfield lighting and instrument landing systems, for which capital allowances have been granted.