1051821027759 | Legal database

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Edited version of private advice

Authorisation Number: 1051821027759

Date of advice: 25 March 2021

Ruling

Subject: FBT exemption

Question 1

Is the Employer a government body for the purposes of paragraph 57A(2)(a) of the Fringe Benefits Tax Assessment Act 1986 (FBTAA)?

Answer

Yes.

Question 2

Would the existing and transferring employee cohorts of the Employer be regarded as exclusively performing services 'in' a public hospital or a hospital carried on by a society or association that is a rebatable employer for the purposes of paragraph 57A(2)(b) of the FBTAA?

Answer

No.

Question 3

If the answer to Question 2 is 'No', would the following existing or transferring employee cohorts of the Employer be regarded as exclusively performing services 'in connection with' a public hospital or a hospital carried on by a society or association that is a rebatable employer for the purposes of paragraph 57A(2)(b) of the FBTAA:

(a) Transferring employees

(b) Employees of the Employer's Procurement and Customer Engagement functions who 'exclusively' service public hospitals

(c) Employees of the Employer's Procurement and Customer Engagement functions who service public hospitals as well as other healthcare service providers

(d) Employees of the Employer's Finance, Information Technology (IT), Communications and other specified functions

(e) Specified internal-facing administrative employees who enable the Employer and other employees of the Employer to provide direct services to public hospitals and other healthcare service providers, and

(f) Members of the Employer's Board who are remunerated by the Employer?

Answer

(a) Yes.

(b) Yes.

(d) Yes.

(e) No.

(f) Yes.

This ruling applies for the following periods:

FBT years ending 31 March 20XX to 31 March 20XX

The scheme commences on:

1 April 20XX

Relevant facts and circumstances

The Employer is a statutory body corporate established by a State or Territory Government.

The Employer was established under the relevant State or Territory's health services legislation.

The general functions of the Employer are to supply or facilitate access to the supply of goods and services to public hospitals and other health or related services.

The existing employee cohorts of the Employer generally perform their duties at the Employer's office location.

Transferring employees

In fulfilling its legislative functions, it is proposed that certain employees of Hospital A will be transferred to the Employer ('transferring employees').

The transferring employees currently operate a large warehouse which receives goods,

equipment and consumables exclusively purchased by public hospitals, manage safe storage and arrange the transportation of these products to public hospitals as required.

The transferring employees currently enjoy the benefit of entitlement to be provided benefits

from their employer (Hospital A) which are exempt from FBT under section 57A of the Fringe Benefits Tax Assessment Act 1986 (FBTAA).

Employees of the Employer's Procurement and Customer Engagement functions

The roles of each the Employer's employees within its Procurement and Customer Engagement functions can be divided into the following two categories:

(i) Employees who deal 'exclusively' with public hospitals, and

(ii) Employees who provide services to both public hospitals and to other healthcare services. The 'other healthcare service' providers may include hospitals carried on by a society or an association that is a 'rebatable employer' or other community-focused healthcare providers. From time to time, these other healthcare services may request access to preferential pricing that has been negotiated/agreed with suppliers by the Employer for public hospitals and public health services.

In terms of the Employer's current key operations, the Employer does not:

• warehouse any products/equipment for public hospitals or public health services

• purchase any goods or equipment for public hospitals or public health services, or

• arrange the logistics to supply any goods or equipment for public hospitals or public health services.

From DD MM 20YY, the Employer's services expanded to include the services referenced above exclusively to public hospitals.

Beyond considering whether another body may access the contractual pricing, the Employer does not provide any other assistance or services to bodies who are not public hospitals.

Employees of the Employer's Finance, Information Technology (IT), Communications and other specified functions

The existing employees in the Employer's Finance, IT, Communications and other specified functions exclusively provide direct services to public hospitals. Those services include:

• the probity audit function and supplier financial viability in directly supporting the Procurement team in establishing collective agreements

• payment of supplier invoices (for stock being supplied to public hospitals) and cost recovery activities (based on product supply) from these same hospitals.

• negotiating the terms and conditions of the collective agreements that the Employer takes out to tender and support partners as a procurement outcome

• provide probity advice to the Procurement team to ensure approaches to market are undertaken appropriately

• providing education, tools and templates to public hospitals to maximise compliance with the requirements pursuant to health purchasing policies and the Modern Slavery Act 2018

• delivering information and communications technology (ICT) solutions for public hospitals in respect of enterprise resource planning (ERP) and Contract Management and Procurement software

• managing a common catalogue to ensure product descriptions are standardised across the State/Territory

• analysing supplier sales data and the benefits of procurement outcomes and reports these insights to the relevant entities. This data includes gains on procurement outcomes and pharmacy system extracts to assist in demand planning.

• developing training packages for public hospitals, including packages on probity, contract management, supplier relationship management, market analysis etc.

• communicating with public hospitals to advise of changes to collective agreements, compliance requirements etc. The materials prepared are exclusively targeted to suppliers and public hospitals.

Specified internal-facing administrative employees who enable the Employer and other employees of the Employer to provide direct services to public hospitals

To enable the Employer and other employees of the Employer to provide direct services to public hospitals and other health-related services, the following existing internal-facing employees provide administrative services, outlined by their job functions below:

• Human Resource Managers

• Management Accountants

• IT Operations Management officers

• IT Application and Records Management officers, and

• Administrative Support officers.

The administrative services these employees provide are duties which do not have a direct connection with a public hospital or a hospital carried on by a society or association that is a rebatable employer. Rather, the duties of these employees have an indirect connection: as a support function to the Employer's other employees who do provide direct services to a public hospital or a hospital carried on by a society or association that is a rebatable employer. As such, in this ruling, these employees have been kept separate from the other cohorts.

Members of the Employer's Board who are remunerated by the Employer

The Employer's Board is responsible for the leadership and strategy of the Employer. This leadership and strategy revolve around delivery of services for public hospitals.

The Board also provides active assurance in relation to the probity of public hospital procurement practices, encompassing a range of goods and services that are required by public hospitals.

The Board is responsible for developing the Employer's strategic plans and ensuring the strategic plans are achieved. As the purpose of the Employer's establishment is to supply, or facilitate the supply, of goods and services for public hospitals, the Employer's strategic plans are focused on ensuring the Employer is serving out its intended purpose. The plans are the first step towards delivering benefits for public hospitals. The Board is concerned with the requirements of the public hospitals. Through an understanding of both the short term and longer term requirements of the public hospitals, the Board develops a prioritised progression as agreed with those entities.

Once the priorities have been agreed, the Board works with the key executives to deliver benefits for the public hospitals. Specific plans are developed by the executives to be agreed with the Board members, which then requires ongoing evaluation by the Board members of progress against the agreed strategic plans and implementing effective stakeholder communication with the public hospitals. In monitoring performance of the various functions and systems of the Employer against their intended purpose, the Board is required to evaluate direct consultation with public hospitals to ensure their needs are being appropriately met.

In addition to facilitating the provision of the required goods and services to public hospitals, the Employer drives effective cost savings for these entities.

The Private Ruling will apply only to the Board members who are remunerated by the Employer.

Assumption

For the purposes of paragraph 57A(2)(b) of the FBTAA, each of the entities listed within specified parts of the relevant State or Territory's health services legislation are either a public hospital or a hospital carried on by a society or association that is a rebatable employer.

Relevant legislative provisions

Fringe Benefits Tax Assessment Act 1986 Section 57A

Fringe Benefits Tax Assessment Act 1986 Paragraph 57A(2)(a)

Fringe Benefits Tax Assessment Act 1986 Paragraph 57A(2)(b)

Fringe Benefits Tax Assessment Act 1986 Subsection 65J(1)

Fringe Benefits Tax Assessment Act 1986 Subsection 136(1)

Reasons for decision

Question One

Is the Employer a government body for the purposes of paragraph 57A(2)(a) of the Fringe Benefits Tax Assessment Act 1986 (FBTAA)?

Summary

The Employer is a government body for the purposes of paragraph 57A(2)(a) of the FBTAA.

Detailed reasoning

Subsection 57A(2) of the FBTAA states:

Where:

a) the employer of an employee is a government body; and

b) the duties of the employment of the employee are exclusively performed in, or in connection with:

(i) a public hospital; or

(ii) a hospital carried on by a society or association that is a rebatable employer; ...

a benefit provided in respect of the employment of an employee is an exempt benefit.

Subsection 136(1) of the FBTAA defines a 'government body' as 'the Commonwealth, a State, a Territory or an authority of the Commonwealth or of a State or Territory.'

The Employer is a statutory body established by a State or Territory Government - it is a body corporate with perpetual succession to enable certain health services and health support services to be provided with goods and services on best value terms within the particular State or Territory.

Therefore, the Commissioner considers that the Employer is a 'government body' for the purposes of paragraph 57A(2)(a) of the FBTAA on the basis that it is either a 'State/Territory', or an 'authority of the State/Territory'.

Question Two

Summary

The existing and transferring employee cohorts of the Employer would not be regarded as exclusively performing services 'in' a public hospital or a hospital carried on by a society or association that is a rebatable employer for the purposes of paragraph 57A(2)(b) of the FBTAA.

Detailed reasoning

The first test in paragraph 57A(2)(b) of the FBTAA requires that the duties be performed exclusively 'in'the relevant type of hospital.

Taxation Determination 2015/12 Fringe benefits tax: when are the duties of the employment of an employee of an employer who is a government body exclusively performed in, or in connection with, a public hospital or a hospital carried on by a society or association that is a rebatable employer? (TD 2015/12) provides the Commissioner's views in determining whether the duties of an employee of an employer who is a government body are exclusively performed in the relevant type of hospital.

Paragraph 2 of TD 2015/12 provides that:

The duties of the employment of an employee of an employer who is a government body are exclusively performed in, or in connection with, a public hospital or a hospital carried on by a society or association that is a rebatable employer for the purposes of paragraph 57A(2)(b) when the duties of the employment of the employee satisfy any of the following tests:

• the duties are performed 'in' a hospital such that the employee performs their duties at the physical location of the hospital facility where the activities of the hospital are being conducted

...

Paragraphs 44 and 45 of TD 2015/12 state:

44. When used as a preposition, the word 'in' can take different meanings. In this context the Macquarie Dictionary defines the word 'in' as including:

1. inclusion within space or limits, a whole, material or immaterial surroundings, etc.; in the city, in the army, dressed in white; in politics.

45. Therefore, the word 'in' can indicate inclusion within a physical space or geographical location. It can also suggest belonging to or being part of an organisation or group (such as 'in the army').

Paragraph 47 of TD 2015/12 provides that the preferred view of the 'in' test is satisfied when the duties of the employee are performed at the physical location of the hospital facility where the activities of the hospital are being conducted.

Paragraph 48 of TD 2015/12 further provides that a hospital's constituent documents or other informative material such as annual reports, local hospital network reports, or hospital board minutes can be used to identify a location where activities of the hospital are being conducted.

The ATO's definition of a 'hospital' is provided on its website within Item 1.1.2 of the table in the GiftPack for deductible gift recipients (DGRs) and donors:

A hospital is an institution in which patients are received for continuous medical care and treatment for sickness, disease or injury. Providing accommodation is integral to a hospital's care and treatment. Clinics that mainly treat ambulatory patients who return to their homes after each visit are not hospitals. However, day surgeries that provide beds for patients to recover after surgery may be hospitals. Homes providing nursing care in respect of feeding, cleanliness and the like are not hospitals. However, nursing homes for people suffering from illness are accepted as hospitals. Hospices for the terminally ill will generally be hospitals. Minor outpatient and nursing care will not prevent an institution being a hospital.

A hospital is therefore a place where patients are received for continuous medical care and treatment for sickness, disease or injury, and the provision of accommodation is seen as integral to that continuous care. The transferring employees are currently operating, and will continue to operate, the existing (or a subsequent) warehouse in order to assist the Employer in fulfilling its legislative function to supply or facilitate access to the supply of goods and services to public hospitals as provided under the relevant State or Territory's health services legislation. The existing warehouse is at a location that is, or would be, distant from the location where a particular hospital's provision of medical care is located. As such, the Commissioner considers that a warehouse cannot be considered to be a hospital, even where the warehouse premises may be regarded as the premises of a public hospital.

In executing their legislative functions of supplying, or facilitating the supply of, goods and services and establishing and maintaining a database of supply markets for access by public hospitals under the relevant State or Territory's health services legislation, the existing employee cohorts of the Employer generally perform their duties of employment at the Employer's business premises. Similar to a warehouse where the transferring employees perform their duties, the business premises are also at a location that is distant from the location where a particular hospital's provision of medical care is located.

Therefore, as neither of the employee populations exclusively perform services 'in' a hospital, the first test under paragraph 57A(2)(b) of the FBTAA is not satisfied.

Question Three

If the answer to Question Two is 'No', would the following existing or transferring employee cohorts of the Employer be regarded as exclusively performing services 'in connection with' a public hospital or a hospital carried on by a society or association that is a rebatable employer for the purposes of paragraph 57A(2)(b) of the FBTAA?

(a) Transferring employees

(b) Employees of the Employer's Procurement and Customer Engagement functions who 'exclusively' service public hospitals

(c) Employees of the Employer's Procurement and Customer Engagement functions who service public hospitals as well as other healthcare service providers

(d) Employees of the Employer's Finance, IT, Communications and other specified functions.

(e) Specified internal-facing employees who enable other employees of the Employer to provide direct services to public hospitals, and

(f) Members of the Employer's Board who are remunerated by the Employer.

Summary

We consider employees in the following job groups exclusively perform services 'in connection with' a public hospital or a hospital carried on by a society or association that is a rebatable employer for the purposes of paragraph 57A(2)(b) of the FBTAA:

• (a) - the transferring employees

• (b) - the existing employees in the Employer's Procurement and Customer Engagement functions (servicing only public hospitals)

• (d) - the existing employees in the Finance, IT, Communications and other specified functions

• (f) - the Board members remunerated by the Employer.

However, we do not consider employees in the following job groups exclusively perform services in connection with a type of hospital mentioned in paragraph 57A(2)(b) of the FBTAA:

• (c) - the existing employees in the Employer's Procurement and Customer Engagement who service public hospitals as well as other healthcare service providers

• (e) - the existing internal-facing administrative employees of the Employer who enable the Employer and other employees of the Employer to provide direct services to public hospitals.

This is because, in respective order:

• for (c) - the duties of these employees extend to servicing healthcare entities which would not be a type of hospital specified in paragraph 57A(2)(b) of the FBTAA. Therefore, these employees' duties are not 'exclusively' performed in connection with a relevant type of hospital

• for (e) - the duties of these employees are too far removed to have the connection contemplated by paragraph 57A(2)(b) of the FBTAA, namely, that employees be engaged in duties that enable hospitals to carry out their functions.

Detailed reasoning

The second test in paragraph 57A(2)(b) of the FBTAA requires that the employee's duties be performed exclusively 'in connection with'a public hospital.

TD 2015/12 provides the following 'tests' to help work out whether the duties of an employee of a government body are performed exclusively in connection with a type of hospital specified in paragraph 57A(2)(b) of the FBTAA:

• the duties are performed 'in connection with' a hospital such that the employee performs their duties as a member of the hospital staff under the direction, management and control of the hospital board of management or chief executive officer, or

• the duties are performed 'in connection with' a hospital such that the employee is engaged in duties that enable the hospital to carry out its functions.

This also demonstrates that the provision is broad enough to include employees who work as a member of a hospital's staff in addition to government employees who work in another departmental role (such as an employee of this Employer) with hospital-related duties but not as a member of the hospital staff.

The meaning of 'in connection with'

Paragraph 53 of TD 2015/12 provides that the definition of 'in connection with' has been defined in Collector of Customs v. Cliffs Robe River Iron Associates per Bowen CJ, Morling and Neaves JJ at paragraph 16:

The meaning of the word 'connection' is both wide and imprecise. One of its common meanings is 'relation between things one of which is bound up with, or involved, in another'.

Similarly, in Burswood Management v. A-G (1990) 23 FCR 144 (Burswood Management), the Court stated in a joint decision:

the words 'in connection with' are words of wide import; and the meaning to be attributed to them depends on their context and the purpose of the statute in which they appear.

Further, paragraph 54 of TD 2015/12 states:

54. In Health and Research Employees Association of Australia v. University of Sydney (Health and Research Employees), Her Honour Gaudron J examined whether an employee who was employed by the Howard Florey Institute of Experimental Physiology and Medicine was a person employed in or 'in connection with' the University of Melbourne. At CLR 250, Her Honour said:

A more appropriate consideration is whether the employment which is claimed to be 'in connection with' universities and/or colleges of advanced education is so bound up or involved with their activities as to be necessarily supportive of or dependent upon such activities. The Institute, as observed earlier, has a separate legal identity. The evidence does not disclose either that the activities of the Institute necessarily depend upon the activities of the University of Melbourne or alternatively that the University's activities in any way depend upon the Institute'.

The Commissioner concludes in paragraph 55 of TD 2015/12 that the phrase 'in connection with' requires that the employee's duties be so involved with the hospital activities that the employee supports the operation of the hospital and conversely that the employee is engaged in duties that allow the hospital to carry out its functions. Under this test, it is therefore not necessary that the duties of employment be performed at the physical location of the hospital.

The exemption will thus be satisfied when the duties of an employee are duties that allow the hospital to carry out its functions.

The meaning of 'exclusively'

The 'exclusively' requirement in paragraph 57A(2)(b) of the FBTAA requires that all of the duties of the employment of the employee must be performed for the required purposes, being 'in, or in connection with' a hospital. The FBT legislation does not provide any guidance on the interpretation of the term 'exclusively'. However, the Macquarie Dictionary defines 'exclusively' to mean 'limited to the object or objects designated' and 'shutting out all other activities: an exclusive occupation.'

Examples

In addition, TD 2015/12 provides examples of roles that are considered 'in connection with' a public hospital, and those roles that are not, including:

• Administrative support employee (Example 4): The unit that the employee works for exclusively provides administrative support to a number of metropolitan public hospitals including procurement of hospital goods and services and payment of suppliers. The employee performs their duties at the Department premises which is outside the physical location of a public hospital. The employee is engaged in duties that enable a hospital to carry out its functions, and as such, the employee performs all of her duties 'in connection with' a public hospital.

• Shared services manager (Example 5): The shared services group is part of a nominated State Administrative Services Department which is the employee's employer. The employee and his team provide information technology services to all areas of the Department of Health including areas concerned with delivery of public hospital services as well as areas which are not hospital-related such as the government relations area. The employee is not exclusively engaged in duties that enable a hospital to carry out its functions. As such, the employee does not perform all their services 'in connection with' a public hospital.

(a) Hospital A employees transferring to the Employer ('transferring employees')

The Commissioner considers that the activities performed by the transferring employees at the warehouse (including receiving goods and consumables purchased by public hospitals, safe storage and arranging the transportation of these products to public hospitals) satisfies the conditions under paragraph 57A(2)(b) of the FBTAA. This conclusion is based on the following:

• The transferring employees operate a large warehouse which receives goods and consumables exclusively purchased by public hospitals or the Employer, and which provides safe storage and arranges the transportation of these products to public hospitals as required.

• Based on application of the principles in TD 2015/12, the transferring employees are considered to support the operation of the hospitals, whilst also allowing these hospitals to carry out their functions.

• These duties promote the purpose of the relevant State or Territory's health services legislation, as the duties contribute to the development of health services in the particular State or Territory for the carrying on of hospitals.

As such, the duties of the transferring employees would be exclusively performed in connection with a relevant type of hospital specified in paragraph 57A(2)(b) of the FBTAA upon commencement of employment with the Employer.

(b) Existing Employees of the Employer's Procurement and Customer Engagement functions who 'exclusively' service public hospitals

The Commissioner is of the view that the existing employees of the Employer's Procurement and Customer Engagement functions who 'exclusively' service public hospitals are performing duties exclusively 'in connection with' a public hospital under paragraph 57A(2)(b) of the FBTAA. This conclusion is based on the following:

• The employees facilitate the supply of goods and services that are integral to the function of a public hospital (one of the statutory role and objects for the Employer). These employees not only support the operation of the hospitals, but - in line with the principles in TD 2015/12 - also allow these hospitals to carry out their functions.

• The employees exercise their employment duties 'exclusively' in connection with public hospitals (which we have assumed for this ruling are the relevant types of hospital mentioned in paragraph 57A(2)(b) of the FBTAA).

• Example 4 in TD 2015/12 provides that an administrative support officer whose division exclusively provides administrative support to public hospitals (including for the procurement of hospital goods and services and payment of suppliers) is deemed to be performing duties 'in connection with' a public hospital, thereby satisfying the requirements under paragraph 57A(2)(b) of the FBTAA.

(c) Existing Employees of the Employer's Procurement and Customer Engagement functions who service public hospitals as well as other healthcare service providers

In order for the exemption in section 57A to apply to employees of the Employer's Procurement and Customer Engagement functions who 'exclusively' service public hospitals as well as other eligible healthcare service providers, paragraph 57A(2)(b) provides that the duties of these employees must be exclusively performed either 'in, or in connection with':

(i) a public hospital, or

(ii) a hospital carried on by a society or an association that is a rebatable employer.

On the basis that these employees have provided services to both public hospitals and other healthcare services (which are generally not public hospitals), it cannot be concluded that the duties of these employees have been 'exclusively' performed in connection with a public hospital, as their duties have not been 'limited to the object or objects designated' by the definition, and thus do not satisfy the first limb of paragraph 57A(2)(b) of the FBTAA.

In terms of the second limb of paragraph 57A(2)(b) of the FBTAA, a 'rebatable employer' is defined in subsection 65J(1) of the FBTAA, which provides that an employer will be considered a 'rebatable employer' if the employer:

(i) is exempt from income tax under specific provisions of the ITAA 1997, and

(ii) satisfies special conditions as outlined in Items 1 to 12 of subsection 65J(1) of the FBTAA.

The Commissioner considers that at least some of the other healthcare service entities will neither be a public hospital, nor a hospital carried on by a society or association that is a 'rebatable employer' for the purposes of subparagraph 57A(2)(b)(ii) of the FBTAA. As such, the second limb of paragraph 57A(2)(b) of the FBTAA is not satisfied.

On that basis, we do not consider the duties of these employees are exclusively performed in connection with a relevant type of hospital specified in subsection 57A(2) of the FBTAA.

(d) Existing Employees of the Employer's Finance, IT and Communications functions

The Commissioner is of the view that existing employees in the Employer's Finance, IT, Communications and other specified functions are performing duties exclusively 'in connection with' a public hospital under paragraph 57A(2)(b) of the FBTAA. This conclusion is based on the following:

• The services provided by these employees (as outlined in the facts to this ruling) are considered to not only support the operation of the hospitals, but - in line with the principles in TD 2015/12 - also allow these hospitals to carry out their functions.

(e) Specified internal-facing administrative employees who enable the Employer and other employees of the Employer to provide direct services to public hospitals

In order for the exemption in section 57A of the FBTAA to apply to the employees in this grouping, the second test in paragraph 57A(2)(b) requires that the employees' duties be performed 'exclusively' 'in connection with' a public hospital.

The Commissioner considers that these internal-facing administrative staff would not be performing duties 'in connection with' a public hospital. This is because these employees are considered to be too far removed to have the connection contemplated by paragraph 57A(2)(b) of the FBTAA that employees be engaged in duties that enable hospitals to carry out their functions.

Whilst the Employer needs the internal-facing administrative staff to carry out its functions, this does not mean the duties of each of those employees necessarily enable a hospital to carry out its functions.

The meaning of 'in connection with' is wide but its scope is not without limit. There still needs to be an evident connection between the duties of each respective administrative staff member and that those duties enable a hospital to carry out its functions. Even though the administrative services provided by these employees may have a connection with or enable the Employer or other employees of the Employer to provide direct services to public hospitals, it could not be concluded on that basis that this necessitates a conclusion that they all enable a hospital to carry out its functions.

(f) Members of the Employer's Board who are remunerated by the Employer

The services provided by the member of the Employer's Board (as outlined in the facts to this ruling) are considered to not only support the operation of the hospitals, but - in line with the principles in TD 2015/12 - also allow these hospitals to carry out their functions. In particular, the key duties of the Board members, being leadership and strategy, directly support the operation of public hospitals. The Board members' focus on developing and further refining the delivery of goods and services to public hospitals, as well as in undertaking performance monitoring and consultation, ensure that eligible hospitals are appropriately supported in the procurement of goods and services that allow public hospitals to carry out their necessary functions. The quantification of the cost savings generated for the public hospitals directly impacts upon the way in which these entities access the critical goods and services they require to function as a public hospital/public health service.

Further, the Commissioner considers that the Board members are wholly dependent on the public hospitals to undertake their duties, and that these duties promote the purpose of the relevant State or Territory's health services legislation, as the duties contribute to the development of health services in the particular State or Territory for the carrying on of hospitals.

As such, it is considered that the duties of the Employer's Board members are 'in connection with' a public hospital pursuant to subsection 57A(2) of the FBTAA.

The employees also exercise their employment duties 'exclusively' in connection with public hospitals (which we have assumed for this ruling are the relevant types of hospital mentioned in paragraph 57A(2)(b) of the FBTAA).

Therefore, the Commissioner is of the view that the Board members who are remunerated by the Employer are performing duties 'exclusively' 'in connection with' a public hospital under paragraph 57A(2)(b) of the FBTAA.

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