• Lump sum payments for healthcare practitioners

    If you have clients who are healthcare practitioners, they may receive a lump sum payment when starting or amending an agreement with a healthcare centre operator.

    Let your clients know that these lump sum payments are ordinary income, since they are either:

    • an inducement for entering into the agreement
    • a profit or gain from an isolated transaction.

    We are concerned that some healthcare practitioners may be incorrectly treating these payments as proceeds from the disposal of a capital asset. This may result in underpayment of tax and expose them to later tax adjustments and penalties.

    See also:

    Last modified: 11 Sep 2017QC 53256