Page 60 - P6 Slide Taxation - Lecture Day 7 - Various Topics
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Personal service providers
• A client of a company or trust which might be a personal service
provider will know whether requirement (a) or (b) are met. This is
not the case with requirement (c).
• The company or trust might therefore supply the client with an
affidavit stating that no more than 80% of the income was received
from one client (or associated institution) (par 2(1A)).
• The client may then bona fide trust the affidavit and therefore not
withhold any employees’ tax.
• A company or trust is excluded from the definition of a personal
service provider where, throughout the year of assessment, three
or more employees who are on a full-time basis engaged in the
business of such company or trust are employed.
• These employees may not be holders of shares in the company or a
settlor or beneficiary of the trust or be a connected person in
relation to that person.
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