The High Court of Singapore has dismissed a legal challenge brought by three obstetricians and gynaecologists against the Inland Revenue Authority of Singapore (IRAS). The ruling, finalized on June 18, 2026, confirms the authority’s power to tax income under individual names rather than through the complex corporate structures established by the practitioners.
The doctors—Adrian Tan, Caroline Khi, and Jocelyn Wong, all formerly of KK Women’s and Children’s Hospital—had entered private practice in 2004. According to the court documents, the group utilized a series of medical and surgical companies to invoice patients. While they reported modest monthly salaries, they extracted substantial profits through tax-exempt dividends and interest-free loans. For instance, Dr. Tan was found to have received over S$7 million in dividends and millions more in loans between 2013 and 2018.
Justice Alex Wong, in his written judgment, stated that the arrangement was clearly designed to avoid or reduce tax liability. He noted that the doctors’ justifications for their low salaries were inconsistent with the significant growth and profitability of their practices. The court highlighted that this case is part of a growing trend where medical professionals have faced scrutiny for attempting to circumvent tax obligations through corporate fragmentation.
This ruling serves as a significant precedent for the regulation of private medical practices in Singapore, signaling that IRAS will continue to look past corporate labels to assess the substance of income generation.