GP practice loses legal battle over $800,000 payroll tax bill
A NSW tribunal has ruled practices have to prove their GPs are not employees to avoid being taxed on all earnings
A chain of GP practices has been ordered to pay nearly $800,000 in backdated payroll tax after losing a legal battle against a state revenue office.
Historically, GP earnings have usually been exempt from the tax because GPs are not deemed as working for their practices because they are paying a percentage of their billings as a service fee.
But in a NSW case, a tribunal ruled this month that the “onus of proof” lies with practice to show their GPs are not being employed — even when contracts specify otherwise.
The case involved three clinics owned by Sydney GP Dr Jawahar Thomas.
