t h e w e a lt h y d o c t o r M a n f r e d p u r t z k i Manfred Purtzki, CPA, CA, is a principal in the Vancouver office of Purtzki Johansen & Associates. He can be reached at: Manfred@purtzki.com or 604-669-7558.
Surprise attack
Don’t be stunned by large GST assessments
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recruitment PHYSICIANS FOR YOU — LEADERS IN PHYSICIAN RECRUITMENT No time to look for a new role? Call the trusted recruitment team. Our strong reputation is built on exceptional service and results. Locum, contract, long-term, city or rural, we have it all. Whether you are a Physician looking for roles across Canada, or a medical facility that requires Physicians,
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we can help. Let our 10 years of experience in Canada and our extensive knowledge of the licensure and recruitment processes work for you. View our current job postings on our website today. Website: www. physiciansforyou.com Office: (778) 475-7995 RADIOLOGISTS — Winnipeg, Manitoba Radiology Consultants of Winnipeg Medical Corporation is seeking fellowship-trained
Just For Canadian doctors Spring 2020
radiologists, certified by the Royal College of Physicians and Surgeons of Canada. Opportunities include oneweek locum tenens June to October 2020 and potential full-time roles for general and subspecialized radiologists. Radco is an established private radiology group based in Winnipeg, which owns and operates community clinics. Our radiologists are affiliated with the University of Manitoba, and
in a litigation or act as an expert witness. One exception is that if the doctor actually examines the individual, even at the request of a third party, then the courts have held that a doctor-patient relationship has been created and GST will not apply. Additional services that a doctor might provide and will trigger GST: 1
The doctor is paid to manage a medical office.
2
The doctor is paid an amount to be on call at a retirement home or nursing home.
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The doctor is paid to give lectures.
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The doctor is paid in a consulting capacity, for instance the development of a patent for a medical device.
And, be aware, if the CRA issues you a GST reassessment, that amount owing is payable—even if you file a Notice of Objection. This differs from income tax, for which the debt owing and payment can be deferred and delayed by filing a Notice of Objection. By understanding when and how GST applies to healthcare services, you can save yourself the unwelcome surprise of an unexpected tax bill.
provide professional services to several Shared Health Manitoba hospitals including the Health Sciences Centre, one of the largest tertiary care centres in Canada. Areas of practice include CT, X-ray, ultrasound, mammography, fluoroscopy, MRI, and interventional radiology. Interested radiologists please submit CV to: Margo Smith, Chief Operating Officer, Winnipeg, MB, MSmith@ radco-wpg.com.
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RA is reassessing healthcare profesrangement to share fees—irrespective of sionals for amounts paid for serwhether the locum or the principal is the vices that do not qualify as exempt initial recipient of the fees—CRA will not medical services. The amounts consider this to be a payment assessed, including interest for the supply of adminisand penalties, can be trative services made by well over $100,000. the principal to the And the reassesslocum. The underlyments that relate ing characteristic of to cost-sharing this arrangement arrangements is an apportionare particularly ment of the fee painful, because a for the healthcare simple restructurservice. Thus, ing of the arrangefor the purposes ment would have of the GST, the avoided the GST amounts apporliability altogether. tioned between the Here’s an example. two parties are not Doctors A locum works in subject to tax. beware…not the clinic and is Before you start reorganizallocated 100% of ing the clinic structure to avoid all medical the fees charged paying tax, please consult with services are tax to the patient. Out your CPA about setting up such a exempt of the fees received, GST-exempt arrangement. the locum pays the Similarly, cosmetic procedures principal for using that have no medical or reconstructhe clinic, the staff and tive purpose are subject to GST. You must equipment. And, in this case, the principal register if you generate $30,000 or more must remit GST on the fees received from of such taxable services over any four the locum. consecutive calendar quarters. On the other hand, when the locum Another scenario in which GST may and principal enter into a bona fide arapply is when a doctor is paid to consult
