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

Income Tax Fundamentals 2020

38th Edition

ISBN:9780357391129

Author:WHITTENBURG

Publisher:WHITTENBURG

Chapter9: Payroll, Estimated Payments, And Retirement Plans

Section: Chapter Questions

Problem 1MCQ

See similar textbooks

Similar questions

All of the following factors are considered by the CRA in determining if an employment relationship was under employee or self-employed arrangement except: Question 13 options: a) Ownership of tools b) Ability to hire others c) Opportunity for profit d) How much the employer can pay
Employees CIT Payable and Employees SIT Payable are:a. not required to be deposited.b. deposited separately with separate agencies (city/locality or state).c. liability accounts that hold the employer's share of SIT and CIT withholding.d. made to the same taxing agency and therefore made together.
Which of the following amounts paid by an employer to an employee is not subject to withholding? Oa. Salary Ob. Travel expense reimbursements from an accountable plan Oc. Commissions UE Od. Bonus Oe. All of these choices are subject to withholding.
i. Discuss five (5) factors that should be considered in determining whether employment should be classified as Contract for Services or Contact of Servicesproviding support from relevant case-law to support your answer for 2 of the factorsdiscussed. ii. What is the tax implication if the employment is one of contract of service rather than contract for services?
1. Under PFRS 15, how shall revenue from contracts with customers such as revenue from initial franchise fee be recognized by the franchisor? a. Upon receipt of the initial franchise fee by the franchisor. b. Upon signing of the franchise agreement. c. When the franchisor satisfies the performance obligation under the franchise agreement. d. Applying the legality over the substance of the transaction. DED g 15
Which of these statements are correct? i. A contract for service is an independent contractor; the contractor is responsible for filing his/her own taxes. ii. Emoluments refer to the salary and monetary benefits an individual receives because of being employed. iii. There is no income that is exempt from PAYE. iv. Contract of Service is a contract of employment, and the employer is responsible to account and pay all statutory taxes. Question 20Answer a. i, ii and iii b. i, ii and iv c. i, only d. i. and iv
46. The allocation of owner's private expenses to his/her business violates which of the following? A.O Accrual concept B.Matching concept C.Separate business entity concept D.Consistency concept
Which of the following is not a condition in identifying the contract with the customer as per IFRS 15? The entity and the customer have approved the contract and are committed to perform their contractual obligations It is certain that the entity will collect the consideration to which it is entitled Each party's rights with regard to the goods or services concerned can be identified The payment terms can be identified EN 2时 6 l
It’s a contract whereby a person binds himself to render some service or to do something in representation or on behalf of another, with the consent or authority of the latter. a. Contract of agency b. Contract of barter or exchange c. Contract for a piece of work d. None of the above
True or false. Reporting the deduction for employers reimbursed travel expenses on schedule C is the same for accountable and non accountable plans.
In accordance with IFRS 15, customer loyalty awards on the goods or services sold, the transaction price received or receivable by the entity must be allocated between the goods or services sold and the customer loyalty awards redeemable in the future partly as revenue and partly as a liability. must be recognized in full as a liability. must be recognized in full as revenue. must be recognized in full as an expense.
Step 1 of the "five-step model" states that certain conditions must be satisfied before an entity can account for a contract with a customer. Which of the following is not one of these conditions? Oa The entity and the customer have approved the contract and are committed to perform their contractual obligations. O b. The payment terms can be identified. O citis certain that the entity will collect the consideration to which it is entitled. Od. Each party's rights about the goods or services concerned can be identified.