Last month, OSH assisted a client in reaching an amicable settlement with the Chief Assessor on the Annual Value (“AV”) to be ascribed to its property that had been let to a multinational technology company for the purposes of property tax.
The Chief Assessor disagreed with legal submissions earlier made by OSH that the value of tenant’s fixtures ought not to be included in the assessment of the property and that actual annual rent of approximately S$2.4 million was the best evidence of the AV. He thus maintained his initial assessment of the AV of the property, where he considered the value of the tenant’s fixtures and ascribed an AV of approximately S$6.1 million to the property.
OSH advised the client to stand firm in its position and an appeal was filed with the VRB against the Chief Assessor’s decision. After the respective Statements were filed with the VRB, and before the pre-hearing conference, parties were able to reach an amicable settlement, where the AV was amended to S$2.6 million, an amount closer to the client’s desired AV (and actual annual rent) and the appeal was withdrawn.