The paged version of this document contained the following header content in the margin: Sch. 4
by the programme contractor which represents a payment by the advertiser from which the advertising agent has deducted any amount by way of commission shall be the amount of the payment by the advertiser after the deduction of the commission, so, however, that if the amount so deducted exceeds 15 per cent. of the payment by the advertiser, the amount of the receipt shall be the amount of that payment less 15 per cent.
(4) Any contract shall provide that where for any insertion of an advertisement a programme contractor receives or is entitled to an entire consideration not solely referable to that insertion, the advertising receipts shall be calculated by reference to so much only of the consideration as is referable to that insertion according to an apportionment made in such manner as the contract may provide.
(5) In the application of this Schedule in relation to the additional payments mentioned in section 32(1)(b), the reference in sub-paragraph (1) to the insertion of advertisements in programmes provided by the programme contractor and broadcast in the United Kingdom by the Authority in the period in question includes (except in the case of a teletext contractor who is not a TV programme contractor) a reference to the insertion of programmes consisting of advertisements provided by the programme contractor for broadcasting on the Fourth Channel and so broadcast in that period.
Profits
2.—(1) The profits of a programme contractor for an accounting period shall be computed in accordance with this paragraph.
(2) The profits shall consist of the excess of relevant income over relevant expenditure.
(3) "Relevant income " means—
(a) income which accrues to the contractor in connection (directly or indirectly) with the provision of programmes by him, and
(b) where income accrues to a subsidiary of the contractor in connection (directly or indirectly) with the provision of programmes by the contractor such part of that income as, in the opinion of the Authority, should be attributed to the contractor as reflecting the contractor's financial interest in the subsidiary.
(4) Without prejudice to the generality of sub-paragraph (3) "relevant income " includes all the contractor's advertising receipts for the accounting period in question.
(5) "Relevant expenditure " means—
(a) expenditure properly chargeable to revenue account which is incurred by the contractor in connection (directly or indirectly) with the provision of programmes by him, and where a subsidiary of the contractor incurs expenditure
(b) properly chargeable to revenue account in connection (directly or indirectly) with the provision of programmes by the contractor, such part of that expenditure as, in the opinion of the Authority, should be attributed to the