Clare-born GP, Dr. Michael Daly, was presented with the Francis Rynd Award for Innovation from NAGP President, Dr. Emmet Kerin, at the AGM on Saturday, the 20th May. Dr. Daly was recognised for his personal sacrifice in taking a case to challenge the constitutionality of the Withholding tax. The successful outcome of this case benefited all GPs.
Dr. Daly explains, “Shortly before the Withholding Tax, I had invested in a new surgery with added units for letting. It was impossible to meet my commitments to the Bank, Building Society, practice expenses and family due to the double taxation. Letting staff go proved much worse than useless as the saving became income that was taxed on the double. After 18 months of working without staff in a busy practice I put a locum in my place and went to Saudi Arabia for some months”.
Dr. Daly was a former Chairman of the AGP, the precursor to the NAGP. With the support of the AGP, Dr. Daly took a case to challenge the constitutionality of the Withholding Tax.
Dr. Daly continued, “Moving to Saudi Arabia addressed the financial issues to an extent and made me a suitable case to challenge the constitutionality of the Withholding tax. I, however, had to sell the property which was to provide my pension. Winning the case meant reimbursement of a year’s tax and made life a lot easier for all GPs concerned”.
The High Court found that a provision of the 1990 Finance Act [which stated that taxes withheld at source on state fees could not be offset against income tax demands in the same year] was unconstitutional.
Dr. Daly’s case ensured all GPs were better off by approximately £15,000. The NAGP are delighted to recognise Dr. Daly’s contribution to the betterment of General Practice.