Sigma now faces the ATO
April 19, 2010
SIGMA Pharmaceuticals’ Sigma
Rewards loyalty scheme is under
investigation by the Australian
Taxation Office, which uncovered
possible problems during a routine
audit of a Sigma pharmacy.
Today’s Financial Review says the
random audit revealed the “volume
and value” of goods received by the
pharmacy under the scheme, which
under tax legislation must be
counted under assessable income.
Electornic goods and holidays are
available to the approximately
1500 pharmacy members of the
scheme, and the probe means that
they may now have a hefty
additional tax bill to account for.
The rewards scheme is also the
subject of the first complaint to be
lodged under the new Generic
Medicines Industry Association
Code of Conduct (PD 13 Apr).
Melbourne academic Ken Harvey
says Sigma Rewards breaches the
code, but the company argued that
the loyalty scheme, operated by its
wholesale division, doesn’t
differentiate between products and
thus doesn’t give any incentive for a
pharmacist to buy a particular
brand.
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