Court strikes down tax avoidance arrangement in test case for medical practitioners

The High Court ruling pivots on a provision in the Income Tax Act, according to judgement grounds released in November.
The High Court ruling pivots on a provision in the Income Tax Act, according to judgement grounds released in November.PHOTO: ST FILE

SINGAPORE - The High Court has dismissed a dentist's appeal that he should be charged the corporate tax rate for earnings paid to a company he created, finding his main goal in setting it up was to avoid tax.

Justice Choo Han Teck ruled in the first such case to go on appeal to the High Court that Dr Wee Teng Yau's move would enable him to pay less taxes on the same services he provided.

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