Hi guys.
So you all reckon I am speaking pure heresey and should be burned at the stake
Taken from the revenue website;
[broken link removed]
Taken directly from this link (actually 13.2.6)
"As the Tax Acts do not define “profession” it must be given its ordinary meaning in accordance with the general principles of statutory construction. In the tax case of CIR V Maxse, 12 TC 41, it is stated that profession involves an occupation requiring either intellectual skill, as in painting, sculpture or surgery or skill controlled by the intellectual ability of the operator. It distinguishes this from an operation, which is substantially the production or sale of commodities.
While certain activities clearly fall within this definition and are accepted as being the exercise of a profession, such as medicine or law, there may be question about the status of others. Each case should be examined with regard to its own particular facts and the question of degree is important."
There is then a list of professions, which are regarded to be subject to the surcharge including accountants. BUT further down, regarding accountants, it says
"It is also considered that whereas accountancy comes within the meaning of profession, bookkeeping, payroll and VAT compliance activities would not in themselves constitute a professional activity. Any business involving tax planning, be it investing or structuring, would come within the general heading of accountancy. It is considered that this encompasses financial services"
My point is where does tax compliance end and tax planning begin. Not an easy question to answer!!
So there must be a grey area in most professions which is deemed to be requiring intellectual ability and another which the operator is just following various steps that they have been thought and not requiring the same degree of intellegence. It is the specific ACTIVITY rather then the profession that is caught.
This is why it has been difficult for the revenue to make such a surcharge stick in the majority of cases.
That would be my take on it. Hope this makes sense
Regards
Dbran
So you all reckon I am speaking pure heresey and should be burned at the stake
Taken from the revenue website;
[broken link removed]
Taken directly from this link (actually 13.2.6)
"As the Tax Acts do not define “profession” it must be given its ordinary meaning in accordance with the general principles of statutory construction. In the tax case of CIR V Maxse, 12 TC 41, it is stated that profession involves an occupation requiring either intellectual skill, as in painting, sculpture or surgery or skill controlled by the intellectual ability of the operator. It distinguishes this from an operation, which is substantially the production or sale of commodities.
While certain activities clearly fall within this definition and are accepted as being the exercise of a profession, such as medicine or law, there may be question about the status of others. Each case should be examined with regard to its own particular facts and the question of degree is important."
There is then a list of professions, which are regarded to be subject to the surcharge including accountants. BUT further down, regarding accountants, it says
"It is also considered that whereas accountancy comes within the meaning of profession, bookkeeping, payroll and VAT compliance activities would not in themselves constitute a professional activity. Any business involving tax planning, be it investing or structuring, would come within the general heading of accountancy. It is considered that this encompasses financial services"
My point is where does tax compliance end and tax planning begin. Not an easy question to answer!!
So there must be a grey area in most professions which is deemed to be requiring intellectual ability and another which the operator is just following various steps that they have been thought and not requiring the same degree of intellegence. It is the specific ACTIVITY rather then the profession that is caught.
This is why it has been difficult for the revenue to make such a surcharge stick in the majority of cases.
That would be my take on it. Hope this makes sense
Regards
Dbran