I am not aware of widespread dissatisfaction among general practitioners about the operation of the withholding tax on professional fees. I would point out that the withholding tax involves no more than the withholding, on account, of an amount of tax due. Full credit for the amount withheld is given in computing the final tax liability. The scheme accordingly confers no additional tax liability on any individual or company and contains safeguards to ensure that no undue adverse effects arise from its operation. Principal among such safeguards is the provision for the payment of an interim refund.
In relation to rebates, I assume that the Deputy is, in fact, referring to payments of interim refunds. The Revenue Commissioners have assured me that they make every effort to ensure that delays in the interim refund procedures are kept to a minimum. Claims for interim refunds of withholding tax are given priority in tax districts. The Commissioners say they are satisfied that, generally speaking, the procedures are working satisfactorily and that there are no delays in making repayments where the conditions necessary for the payment of an interim refund are satisfied.
The withholding tax applies to the full amount, including payments for expenses, paid to a practitioner in respect of the rendering of medical services. Practitioners are, however, granted full allowance for valid expenses when computing their tax liability. This fact, along with the operation of the interim refund procedures, should ensure that hardship does not arise from the application of the tax to expenses.
I am not aware that young doctors are particularly adversely affected by the withholding tax. This is because most doctors will already have practised for some time before entry into the GMS scheme. The fact that they are already in the tax net will qualify them for the interim refund system.
If the Deputy is aware of any specific instances of doctors, young or otherwise, suffering particular hardship as a result of the operation of the withholding tax, I would be glad to have such cases investigated.