Page 59 - P6 Slide Taxation - Lecture Day 7 - Various Topics

Personal service providers

A personal service provider is any company or trust where any person, who is a
connected person in relation to such company or trust, personally renders services on
behalf of the company or trust to a client. One of the following requirements must

also be met:
• (a) such person would be regarded as an employee of the client if the service was

rendered by such person directly or indirectly to such client, other than on behalf
of such company or trust. In terms of Interpretation Note No 35 (Issue 4) this
would be met if the person receives ‘remuner- ation’ as defined, or
• (b) where the service or duties must be performed mainly at the premises of the

client, such person or such company or trust is subject to the control or
supervision of the client as to the manner in which the duties are to be performed
or in rendering such service, or
• (c) where more than 80% of the income of such company or trust from services

rendered, consists of amounts received from any one client or an associated
institution. According to Interpretation Note No 35 (Issue 4) the reference to
‘income’ in the test is a reference to ‘income’ as defined in s 1(1).

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