MAM has received complaints from a number of private GPs who have been approached by the Tax Compliance Unit (TCU). No doubt, other categories of doctors will follow suit. In some instances, the TCU seems to have had unreasonable expectations with respect to doctors’ earnings.

In view of this, MAM has had talks with the TCU. It is, of course, not up to MAM to say how much doctors earn as this varies widely from individual to individual. However, we are interested that any figure that the TCU comes up is a realistic one and not based on misconceptions. On MAM’s insistence, the TCU has accepted that:
• It gives the doctor the data and workings on how it has arrived at the estimated income (in writing)
• The doctor should be given a minimum of 3 weeks to study the data and to reply. This will give the doctor the time necessary to counter the data
• The TCU has also agreed to review the 5% increase in income that it expects from doctors, but we await a definitive reply on this issue

You are therefore strongly advised to examine the TCU workings carefully before committing yourself. If necessary, you can get professional advice from an accountant or tax consultant. To this end, it might interest you to know that MAM has negotiated favourable rates with Deloitte tax consultants for its members
MAM will also be presenting global data showing the that TCU’s expectations are unrealistic.

It might also interest you to know that the TCU often bases its estimates of income from extrapolations from data including the following:
• Purchase of property, cars and seacraft;
• Overseas travel
• Private school expenses
• Payments by insurance agencies
• Payments by private hospitals
• Purchase of medical equipment, pharmaceuticals (e.g. vaccines) & disposals
• Issuing of sickness certificate
• Number of hours worked (normally this data is supplied by the taxpayer himself

Stephen Fava

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