Telco Towers Qualify As Plant For Capital Allowance

On 19.5.2016, in the case of IQSB v Ketua Pengarah Hasil Dalam Negeri, the High Court held that telecommunication towers are "plant". Accordingly, the taxpayer was entitled to claim capital allowance on the capital expenditure incurred on the towers. Our tax lawyers successfully represented the taxpayer.

Issue

Whether the Special Commissioners (SC) committed an error of law in ruling that telecommunication towers are not "plant".

Facts

The taxpayer is in the business of providing telecommunication towers to telecommunication service providers who will then affix their antennas to the towers. The taxpayer owns 193 telecommunication towers which are installed on rented land.