Hospitals face Revenue bills

The country's main public hospitals are facing a bill that could reach several hundred thousand euro to the Revenue Commissioners…

The country's main public hospitals are facing a bill that could reach several hundred thousand euro to the Revenue Commissioners in relation to tax owed on mileage payments made to staff.

The Irish Times understands the Revenue Commissioners have ruled that staff rostered "on call" must pay tax on mileage expenses paid for travelling between their homes and hospitals.

The ruling affects thousands of staff who operate on call rosters in hospitals around the country.

However, sources said doctors may be exempt from the tax in some cases of genuine patient emergencies.

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The commissioners' ruling has been backdated to January 1st, 2003.

It is understood that hospitals, as the employers, are considered responsible for paying the outstanding tax liability in relation to the travel expenses payments.

Senior Health Service Executive sources confirmed last night that the Revenue Commissioners had made a ruling in relation to tax on travel expenses for on-call staff.

Sources said the issue affected most of the main public hospitals and a number had made settlements.

Some health service sources said that overall the main public hospitals in the country could, collectively, face having to pay up to €500,000 to the Revenue as a result of the ruling.

The Revenue last night declined to comment on the issue.

A spokesman said that the Revenue Commissioners considered that hospitals were individual taxpayers, and they did not comment on individual cases.

The board of Beaumont Hospital in Dublin, which is one of the largest in the country, was told in recent weeks that it will have to include details of of its settlement with the Revenue in its annual accounts for the year with an accompanying explanatory note.

The hospital was unable to give details last night of the amount involved.

It is understood that the commissioners are also examining grant payments made to non-consultant hospital doctors by the health services for training purposes.

Sources said that a number of doctors had used the €3,000 training grant to purchase computers, and that this was being examined by the commissioners.

It is understood that no determination has yet been made by the Revenue regarding these training grants.

Martin Wall

Martin Wall

Martin Wall is the former Washington Correspondent of The Irish Times. He was previously industry correspondent