Dáil Éireann Debate, Wednesday - 11 October 2023
227. Deputy Emer Higgins asked the Minister for Health if he will engage with the Revenue Commissioners to ensure GMS income declaration can continue to be paid through partnerships, as changing this practice could lead to financial uncertainties, disrupt GP services and contradict Sláinte Care's preferred partnership model; and if he will make a statement on the matter. [44373/23]
View answerThe collection of taxes and issues relating to the interpretation of tax law are a matter for the Revenue Commissioners. However, I am aware of the concerns raised regarding new guidance to be issued shortly by the Revenue Commissioners regarding the tax treatment of GP's GMS income.
Officials from my Department and and the HSE have engaged with the Office of the Revenue Commissioners and the Department of Finance to understand the context of the new guidance and to identify the potential operational issues which may arise following its publication.
Importantly, the guidance does not reflect a change in tax law, but clarifies how GPs’ GMS income should be treated for the purposes of tax under current tax law. To assist GPs and GP practices in complying with their obligations under tax legislation, Revenue will publish detailed guidance shortly. This will supplement the guidance issued to tax practitioners, through the Tax Administration Liaison Committee, in July of this year clarifying the correct tax treatment of GMS income. To allow GPs and GP practices time to make any necessary adjustments to their arrangements to ensure compliance with applicable tax policy and legislation, Revenue have implemented transitional arrangements up to the end of 2023. From 1 January 2024, those GPs and GP practices should account for tax on GMS income in accordance with the legislation in this area.
My Department and the HSE are also engaged with the IMO and will remain engaged with them to address the potential operational issues raised.
The Strategic Review of General Practice, which is now underway, will examine the current contractual arrangements for the GMS, as well as other issues, and will propose measures necessary to modernise the contract.
