Independent contractors – part 1

2008-05-07 00:00

"Is the person an independent contractor or an employee?" That is the question! This debate is very controversial and widely misinterpreted. In an effort to provide concise guidance for taxpayers, the SA Revenue Service (SARS) have released issue two of Interpretation Note (IN) No. 17 dated January 9, 2008.

The IN sets out two sets of tools to assist in determining whether a person is an independent contractor for the purposes of employees’ tax. The first test is known as the statutory test. In the event that the statutory test is conclusive, it means that a person is deemed not to be an independent contractor for the purposes of determining employees’ tax. The second test is known as the common law test. This test comprises rigid rules in determining whether or not a person is an independent contractor. The IN states that the statutory test must be considered first in determining whether the person is an independent contractor. The common law test will be applied where the statutory test is not applicable.

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
0 comments
Comments have been closed for this article.

Inside News24

 
/News
Traffic Alerts
Traffic
There are new stories on the homepage. Click here to see them.
 
English
Afrikaans
isiZulu

Hello 

Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.


Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.