Disguised employment relationship ▸ Conditions for s.9A о 。 There is an agreement (verbal or written) 。 Services have been carried out under the agreement by an individual ("the Relevant Individual") for the "relevant person" or any other person; and 。 Remuneration for the services has been paid to a corporation controlled by the Relevant Individual Effects 0 The relationship between the "relevant person” (i.e. the fee payer) and the Relevant Individual (i.e. the service provider) is treated as an employer-employee relationship. • Remuneration for the services are deemed to be income derived by the Relevant Individual from employment and hence chargeable to Salaries tax. 0 ⚫ The "relevant person” must comply with the filing obligations as an employer. Disguised employment relationship To avoid double taxation • Service company Service fee received is not chargeable to profits tax and accordingly, no deductions or depreciation allowance will be allowed The Relevant Individual Remuneration paid to him by the service company is not chargeable to salaries tax to the extend that the remuneration is attributable to services carried under the agreement

Disguised employment relationship ▸ Conditions for s.9A о 。 There is an agreement (verbal or written) 。 Services have been carried out under the agreement by an individual ("the Relevant Individual") for the "relevant person" or any other person; and 。 Remuneration for the services has been paid to a corporation controlled by the Relevant Individual Effects 0 The relationship between the "relevant person” (i.e. the fee payer) and the Relevant Individual (i.e. the service provider) is treated as an employer-employee relationship. • Remuneration for the services are deemed to be income derived by the Relevant Individual from employment and hence chargeable to Salaries tax. 0 ⚫ The "relevant person” must comply with the filing obligations as an employer. Disguised employment relationship To avoid double taxation • Service company Service fee received is not chargeable to profits tax and accordingly, no deductions or depreciation allowance will be allowed The Relevant Individual Remuneration paid to him by the service company is not chargeable to salaries tax to the extend that the remuneration is attributable to services carried under the agreement

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter23: Exempt Entities

Section: Chapter Questions

Problem 1BCRQ

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