Ahead of the introduction of the personal 39% tax rate, we re-issued our revenue alert on diverting personal services income.
RA 21/01: Diverting personal services income by structuring revenue earning activities through a related entity such as a trading trust or a company (Tax Technical website)
This revenue alert outlines the law in relation to personal services income, and when it can be counted as trust or company income for tax, rather than individual income.
We have begun contacting customers who appear to be diverting their income and benefiting from the different tax rate. If you think your clients might be affected, contact us at this email address.