Stephen Donnelly (Wicklow, Fianna Fail)
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While the collection of taxes and issues relating to the interpretation of tax law are a matter for the Revenue Commissioners, I am aware of the concerns that were raised around the tax treatment of GP's GMS income and the related guidelines issued by the Revenue Commissions.

The guidelines illustrate how GPs’ GMS income should be treated for the purposes of tax. 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 implemented transitional arrangements up to the end of 2023.

Following engagement between my Department and the HSE with the Revenue Commissioners and the Department of Finance, the Finance (No.2) Bill 2023, now enacted, was amended so as to insert section 1008A into the Taxes Consolidation Act 1997. Section 1008A provides that where individual GPs enter into contracts with the HSE, to provide certain medical services, and provide those services in the conduct of a partnership profession with other individual GPs, the income can be treated for income tax purposes as that of the partnership, where a joint election is made. The amendment also provides that any Professional Services Withholding Tax (PSWT) credit may be claimed by the medical partnership in such circumstances. This legislation came into force on the 1st of January.

Section 1008A does not operate to treat income of an employee of a partnership as income of the partnership, nor does it apply in the case of a partnership involving any persons who are not individuals.

My Department and the HSE continue to engage with the Office of the Revenue Commissioners and the Department of Finance, as well as with the IMO, on this matter.

The current contractual arrangements for the GMS, as well as other issues, will be examined under the Strategic Review of General Practice, which will propose measures necessary to modernise the contract.