David Cullinane (Waterford, Sinn Fein) | Oireachtas source

Obviously the consultant pays income tax on the hospital contract, which is a public contract. He or she pays 52% tax on the private income, which is €52,000.

Let us look at the figure for incorporation. I presume a consultant will pay PAYE on the hospital contract. However, it is the private element of the income that is incorporated. Let us look at the example given. It shows that a consultant can pay himself or herself a salary of €40,000 and pay income tax on the €40,000. The remaining €60,000 is seen as profit by the company and, therefore, is subject to 12.5% corporation tax. That means that the consultant's liability would be €28,300 rather than €52,000. Incorporation is a considerable saving. Is that legal?