Dáil Éireann Debate, Tuesday - 7 November 2023
1100. Deputy Alan Dillon asked the Minister for Health to provide clarity on the outcome of discussions around concerns on the treatment of GMS income within a contractual GP partnership arrangement and any possible impact on tax revenue following new proposals by the Revenue Commissioners to prohibit GMS income being mandated to partnerships or employers; and if he will make a statement on the matter. [47314/23]
View answer1187. Deputy Neasa Hourigan asked the Minister for Health if he will provide an update on ongoing work to resolve the contractual arrangement issues with general practitioners associated with the upcoming revised tax treatment of general medical services income of general practitioners; and if he will make a statement on the matter. [47857/23]
View answerI propose to take Questions Nos. 1100 and 1187 together.
The 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 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.
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.
