David Cullinane (Waterford, Sinn Fein) | Oireachtas source

I wish to discuss an issue I raised previously. I raise it again this morning because I struggle to understand how it works, and why the system is the way it is. I refer to very high earners who set up companies rather than receive a salary. In other words, what would constitute a salary is paid to the company and then corporation tax is paid on most of this income and a salary is drawn down. This phenomenon was investigated in the context of a special report on hospital consultants compiled by the Comptroller and Auditor General. That report was more to do with the expenses claims, if my memory is correct. What is the purpose of that? Why would a person set up a company for that purpose? What is the incentive to do it?