At a TALC Audit subcommittee meeting, Revenue stated that it will be conducting a project to verify the income and expenses of medical locums generally, but particularly medical locum companies contracted by intermediaries, such as an employment agency, to provide their services to an end user.

A pilot project carried out in one of Revenue’s Regions indicated that expenses were incorrectly claimed for tax purposes in a number of locum companies so the project is being extended nation-wide. Revenue noted certain hallmarks of tax irregularity such as expense claims which are not wholly and exclusively incurred for the purpose of the trade or which are not supported by the necessary documentary evidence. Cases will be profiled and the locum project will be conducted by each Region. Investigations, audits and aspect queries will be carried out on the companies and their directors as necessary depending on the risks identified. Taxpayers are entitled to make qualifying disclosures in accordance with the guidelines as set out in the The Code of Practice for Revenue Audit and other Compliance Interventions.