Seán Fleming (Laois-Offaly, Fianna Fail) | Oireachtas source

As I outlined, the Minister for Finance intends to bring forward an amendment on Report Stage of the Finance (No. 2) Bill 2023 to provide that where an individual GP enters into a contract with the HSE to provide certain medical professional services and provide those services in the conduct of a partnership profession with other individual GPs, the income from those professional services can be treated for income tax purposes to be that of the partnership. I think that is the substance of what Deputy Burke is referring to. That deals with those who are in a partnership.

The core of the issue is a contractual one. The current GMS contract dates back to 1989 and was developed at a time when a significantly large number of GPs functioned as individual practitioners in single-handed practices. Since then, general practice has evolved and a majority of GPs now provide services in the context of a group practice, which is normally established by a partnership. The Minister for Health has confirmed that the strategic review of general practice now under way will examine the current contractual arrangements for the GMS as well as other issues and will propose measures necessary to modernise the contract. In the interim, officials from the Department of Finance, Revenue, the HSE and the Department of Health will continue to examine the matter. It is complex, with no easy, one-size-fits-all solution, as there are a number of business arrangements and models in the GP sector. Revenue is allowing for a transitional period up to 31 December 2023 to assist GPs and medical practices to comply with their obligations under tax law. Further guidance will be issued to assist GPs in applying the correct tax treatment in respect of their GMS income. The Minister for Finance will provide further detail on the matter when he introduces the Report Stage amendment.

Deputy Burke can see from the response that the issue of those who are in a partnership is far more straightforward than where this is done by way of company arrangement. The Minister is dealing with as much as he can at the moment and will have further details when it comes to Report Stage of the Finance (No. 2) Bill.

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