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Relevant contracts tax.
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22.— (1) Chapter 2 of Part 18 of the Principal Act is amended—
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(a) in section 530(1) by substituting the following for paragraph (c) in the definition of “construction operations”:
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“(c) the installation, alteration or repair in any building or structure of systems of heating, lighting, air-conditioning, soundproofing, ventilation, power supply, drainage, sanitation, water supply, or burglar or fire protection,”,
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(b) in section 530(1) by substituting the following for paragraph (ca) in the definition of “construction operations”:
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“(ca) the installation, alteration or repair in or on any building or structure of systems of telecommunications,”,
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(c) in section 530(1) by substituting the following for the definition of “deduction summary”:
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“ ‘deduction summary’, in relation to a return period, means a statement (adjusted as appropriate in accordance with regulations made under this Chapter) which the Revenue Commissioners cause to be issued to a registered principal setting out, in summary form—
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(a) details in respect of each relevant payment notified by that principal under section 530C which is, in accordance with regulations made under this Chapter, the subject of a valid deduction authorisation at the time of issue of the deduction summary, and
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(b) the aggregate amount of tax that is, based on the details referred to in paragraph (a), payable by the principal in respect of the return period,
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and includes a statement to the effect that no such relevant payments were notified, where that is the case;”,
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(d) in section 530(1) in the definition of “relevant contract”, by substituting “including persons in partnership” for “including a partnership in respect of which the principal has not received a relevant payments card”,
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(e) in section 530(1) by inserting the following after the definition of “subcontractor”:
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“ ‘technology systems failure’ means circumstances in which the electronic system put in place by the Revenue Commissioners for the efficient operation of this Chapter is not functioning or is not functioning properly at any particular time such that a person is unable to comply with an obligation under this Chapter or regulations made under this Chapter, or circumstances where a person concerned is unable to use the electronic system at any particular time because of a general or partial systems failure of an internet service provider or of an electricity service provider, occurring in the general locality of the person’s place of business;”,
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(f) in section 530A(1) by deleting “or” where it last occurs in paragraph (f), by substituting “undertaking, or” for “undertaking.” in paragraph (g) and by inserting the following after paragraph (g):
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“(h) a person who carries out the installation, alteration or repair in or on any building or structure of systems of telecommunications.”,
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(g) in section 530B(1) by substituting the following for paragraph (a):
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“(a) information in relation to—
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(i) the identity of the subcontractor, including name and tax reference number,
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(ii) the estimated contract value,
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(iii) the estimated contract duration, including the estimated start date and estimated end date of the contract,
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(iv) the location or locations at which relevant operations under the contract are to take place, and
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(v) whether or not a contract is a labour only contract,”,
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(h) in section 530B by inserting the following after subsection (1):
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“(1A) (a) Before providing the information and declaration referred to in subsection (1), a principal shall be satisfied as to the identity of the subcontractor concerned.
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(b) For the purposes of paragraph (a), a principal shall require documentary evidence of identity from the subcontractor and shall make and retain a copy of the documentary evidence provided, or record and retain relevant details from the documentary evidence given.”,
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(i) in section 530B by substituting the following for subsection (4):
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“(4) The Revenue Commissioners shall make regulations for the purposes of this section and such regulations may—
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(a) specify the manner by which principals shall communicate electronically with the Revenue Commissioners,
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(b) in the case of a labour only contract, provide for the submission of additional information in relation to the contract,
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(c) provide for the issuing of an acknowledgement by the Revenue Commissioners to a principal following notification by the principal of a contract under subsection (1) and for the manner by which such acknowledgement may issue,
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(d) provide for notification to a subcontractor by the Revenue Commissioners of details of a contract, including changes to the terms of a contract, in respect of which a principal has notified the Revenue Commissioners under subsection (1) that the subcontractor is a party and for the manner by which such notification may issue,
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(e) provide for notification to the Revenue Commissioners by a principal of changes to the terms of a contract which has been notified under subsection (1),
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(f) provide for a principal to notify a subcontractor where the Revenue Commissioners are unable to verify the identity of the subcontractor by reference to the name and tax reference number supplied to the Revenue Commissioners by the principal under subsection (1), and
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(g) provide for any other related matters.”,
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(j) in section 530C by substituting the following for subsection (3):
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“(3) The Revenue Commissioners shall make regulations for the purposes of this section and such regulations may—
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(a) specify the manner by which principals shall communicate electronically with the Revenue Commissioners,
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(b) provide for the details to be supplied by a principal in relation to a payment referred to in subsection (1),
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(c) specify the circumstances in which and the means by which a principal may cancel a notification given under subsection (1),
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(d) specify the circumstances in which notification under this section is deemed not to have been given,
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(e) provide for notification to a subcontractor where a payment notification is cancelled, and
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(f) provide for any other related matters.”,
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(k) in section 530D by substituting the following for subsection (5):
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“(5) The Revenue Commissioners shall make regulations for the purposes of this section and such regulations may—
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(a) specify the manner by which the Revenue Commissioners shall communicate electronically with a principal,
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(b) provide for the circumstances in which a deduction authorisation shall be valid and for the period of validity of a deduction authorisation,
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(c) specify the details to be contained in a deduction summary,
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(d) specify the obligations on a principal to ensure that a deduction summary accurately reflects the details of all relevant payments made, and tax deducted, by a principal in a return period, and
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(e) provide for any other related matters.”,
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(l) in section 530E(1) by substituting the following for paragraph (c):
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“(c) shall be 35 per cent where the Revenue Commissioners have made a determination that the subcontractor is a person to whom neither section 530G nor section 530H apply, and
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(d) shall, in the case of a partnership, be the highest rate that would apply to any of the individual partners following a determination by the Revenue Commissioners under section 530I.”,
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(m) in section 530F(2) by substituting the following for paragraph (b):
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“(b) without prejudice to any other penalty to which the principal may be liable and without prejudice to section 1078, be liable to a penalty of €5,000 or the amount of the tax payable under paragraph (a), whichever is the lesser.”,
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(n) in section 530F(3) by substituting the following for paragraph (a):
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“(a) Where subsection (2)(a) applies and the principal submits the details of the relevant payment in a return for the relevant return period by the due date for the return and, if appropriate, provides the Revenue Commissioners with such details, in relation to the relevant contract in respect of which the relevant payment was made, as may be required by the Revenue Commissioners, the Revenue Commissioners shall establish the amount of tax that would have been due from the principal in respect of that payment had the rate of tax been the rate of tax last notified by the Revenue Commissioners to the subcontractor concerned under section 530I and, notwithstanding the provisions of subsection (2)(a), the tax due from the principal in respect of that payment by virtue of that subsection shall be the amount so established.”,
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(o) in section 530F(3) by inserting the following after paragraph (b):
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“(c) The amount of the penalty under subsection (2)(b) shall be calculated without reference to any adjustment of the tax due as a result of the application of paragraph (a).”,
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(p) in section 530F by substituting the following for subsection (4):
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“(4) Where, in making a relevant payment to a subcontractor, a principal deducts tax from the payment, the principal shall—
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(a) provide the subcontractor with a copy of the deduction authorisation related to that payment, or
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(b) arrange for the following details from the deduction authorisation to be given to the subcontractor by written or electronic means:
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(i) the name and tax reference number of the principal,
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(ii) the name and tax reference number of the subcontractor,
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(iii) the gross amount of the payment, including the amount of tax deducted,
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(iv) the amount of tax deducted,
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(v) the rate at which tax was deducted,
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(vi) the date of the payment, and
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(vii) the unique reference number issued by the Revenue Commissioners on the deduction authorisation.”,
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(q) in section 530F by inserting the following after subsection (6):
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“(7) Where, due to a persistent technology systems failure, a principal is unable to give notification to the Revenue Commissioners under section 530C(1) and has no option but to make a relevant payment without complying with that provision, subsection (2) shall not apply to that payment if the principal—
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(a) deducts tax from that payment at the rate last notified to the principal in respect of the subcontractor concerned, or if there was no such notification, deducts tax at a rate of 35 per cent from that payment,
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(b) immediately upon rectification of the technology systems failure notifies the Revenue Commissioners, in accordance with this Chapter or regulations made under this Chapter, that the payment has been made,
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(c) provides all details in relation to the payment that the Revenue Commissioners may require, and
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(d) pays the tax deducted in accordance with paragraph (a) to the Revenue Commissioners on or before the due date for the making of a return for the period within which the principal notifies the Revenue Commissioners under paragraph (b).
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(8) Where a principal complies with the requirements of subsection (7)—
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(a) the principal shall be deemed to have deducted tax from a relevant payment in accordance with the terms of a valid deduction authorisation, and
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(b) for the purposes of section 530K, the payment shall be deemed to have been made in the return period in which the principal notifies the Revenue Commissioners under subsection (7)(b).
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(9) A principal shall, on request, provide the Revenue Commissioners with information in relation to the circumstances and details of a persistent technology systems failure under subsection (7).”,
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(r) in section 530G(2) by substituting the following for paragraph (a):
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“(a) engaged in the business of carrying out relevant contracts in partnership unless the partnership business itself has complied with the obligations referred to in subsection (1) and the Revenue Commissioners are satisfied that it will continue to comply with those obligations,”,
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(s) in section 530H(3) by substituting the following for paragraph (a):
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“(a) a person engaged in the business of carrying out relevant contracts in partnership unless the partnership business itself has complied with the obligations referred to in subsection (1) and the Revenue Commissioners are satisfied that it will continue to comply with those obligations, or”,
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(t) in section 530H by inserting the following after subsection (3):
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“(4) This section also applies to a person who satisfies the Revenue Commissioners that, in all the circumstances, the matter or matters referred to in subsection (1), (2) or (3), which would otherwise cause such person not to be a person to whom this section applies, ought to be disregarded for the purposes of this section.”,
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(u) in section 530I by substituting the following for subsection (2):
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“(2) Following a determination under subsection (1), the Revenue Commissioners shall notify the subcontractor of the determination and the rate of tax resulting from such determination.”,
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(v) in section 530I by inserting the following after subsection (3):
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“(4) The Revenue Commissioners shall not be obliged to make a determination under subsection (1)—
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(a) until after a period of 30 days has elapsed following the previous determination made by the Revenue Commissioners in respect of a subcontractor,
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(b) if an appeal by a subcontractor is awaiting determination under subsection (3), or
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(c) until a period of 30 days has elapsed following determination of an appeal under subsection (3).”,
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(w) in section 530J by substituting the following for subsection (3):
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“(3) The Revenue Commissioners shall make regulations for the purposes of this section and such regulations may provide for—
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(a) keeping and maintaining the register,
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(b) registration and time for registration,
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(c) the particulars to be submitted to the Revenue Commissioners for the purposes of registering a person as a principal,
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(d) notification of change in relevant details,
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(e) notification of cessation as a principal,
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(f) cancellation of registration,
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(g) the use of electronic means in connection with the registration process, and
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(h) any other related matters.”,
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(x) in section 530K by substituting the following for subsection (2):
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“(2) (a) For the purposes of subsection (1), where the Revenue Commissioners issue, under section 530D(3), a deduction summary to a principal for a return period, the details on that summary shall, for the purposes of the Tax Acts, be deemed to be a return made by the principal to the Collector-General in respect of the return period and the amount of tax specified on that summary shall be deemed to be the amount specified by the principal of his or her tax liability under this Chapter in respect of that return period.
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(b) Paragraph (a) does not apply where a principal is required to amend the details on a deduction summary in accordance with regulations made under this section and to submit a return under subsection (1) in accordance with those amended details, and so submits the required return.”,
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(y) in section 530K by substituting the following for subsection (5):
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“(5) The Revenue Commissioners shall make regulations for the purposes of this section and such regulations may provide for—
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(a) the manner by which principals shall communicate electronically with the Revenue Commissioners,
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(b) the particulars to be included in the return required under this section,
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(c) the obligations on, and the actions to be taken by, a principal to ensure that any relevant payment made by a principal relating to a return period and the tax liability related to that payment are accurately reflected on the return required under this section,
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(d) notification to a subcontractor in relation to actions taken by a principal as referred to in paragraph (c), and
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(e) any other related matters.”,
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(z) in section 530M by substituting the following for subsection (1):
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“(1) Notwithstanding the requirements of section 530K(1), and without prejudice to any penalty to which the principal may be liable, a principal may, as appropriate—
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(a) make a return required under section 530K(1) after the due date relating to the relevant return period, or
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(b) amend a return after the making of the return or the deemed making of a return under section 530K(2) but—
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(i) no amendment may be made in relation to any payment which has been the subject of a deduction authorisation under section 530D, and
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(ii) no amendment may be made to a return where a Revenue officer has commenced an audit or other investigation in relation to the tax affairs of the principal to whom the return relates for the chargeable period in which the return period falls.”,
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(aa) in section 530M by substituting the following for subsection (5):
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“(5) The Revenue Commissioners shall make regulations for the purposes of this section and such regulations may provide for—
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(a) the manner by which principals shall communicate electronically with the Revenue Commissioners,
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(b) the particulars to be included in a return under this section,
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(c) the actions to be taken by a principal to ensure that any relevant payment made by a principal relating to a return period and the tax liability related to that payment are accurately reflected on a return under this section,
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(d) the format of a return which can be made in a case where a principal is appealing an assessment under section 530N, and
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(e) any other related matters.”,
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(ab) by substituting the following for section 530P:
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“Treatment of deducted tax.
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530P.— (1) Where a principal deducts tax from a payment to a subcontractor in accordance with section 530F, such tax shall be treated as a payment on account by the subcontractor—
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(a) of income tax for that tax year, where the tax was deducted in the basis period for a tax year, or
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(b) of corporation tax for that accounting period, where the tax was deducted in an accounting period of a company.
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(2) For the purposes of this Chapter, tax treated in accordance with subsection (1) shall be known as deducted tax.
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(3) (a) Deducted tax shall be available for offset by the Revenue Commissioners against other tax liabilities of a subcontractor and in this subsection ‘tax’ has the same meaning as in section 960A.
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(b) The Revenue Commissioners shall notify a subcontractor of the amount of deducted tax, if any, which is offset against other tax liabilities of the subcontractor.
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(4) Where an assessment to income tax or, as the case may be, corporation tax has been made in relation to a subcontractor for a chargeable period, then deducted tax related to that period less any amount which is either—
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(a) required to meet the income tax or, as the case may be, corporation tax liability of the subcontractor, or
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(b) offset against other tax liabilities of the subcontractor under subsection (3),
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may, subject to section 865, be repaid to the subcontractor.
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(5) No repayment of deducted tax shall be made, except in accordance with subsection (4).
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(6) No amount of deducted tax shall be treated as a payment on account, set off or refunded more than once and no amount of deducted tax set off under subsection (3) or refunded under subsection (4) shall be treated as a payment on account.”,
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(ac) in section 530R(1) by inserting “, and the provisions of section 530P shall, with any necessary modifications, apply” after “them”,
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(ad) in section 530R by substituting the following for subsection (2):
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“(2) Except where the principal concerned makes a separate payment to each member of the gang or group, a person authorised by the gang or group, or in the case of a partnership, the precedent partner, shall, in respect of tax deducted from relevant payments to the gang or group, give to the Revenue Commissioners—
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(a) the name, address and tax reference number of every person in the gang or group, and
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(b) details of the proportion of the tax deducted to which each person, named by virtue of this provision, is entitled.”,
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(ae) in section 530S by substituting the following for subsection (1):
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“(1) Before giving a notification to the Revenue Commissioners under section 530C, a principal shall obtain from the subcontractor concerned a statement setting out appropriate details of the work giving rise to the payment, and the cost of the work, and such statement shall bear the subcontractor’s name, business address and tax reference number.”,
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(af) in section 530S(4) by substituting the following for paragraph (b):
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“(b) Each subcontractor shall keep and maintain—
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(i) a copy of each deduction authorisation supplied by a principal under section 530F(4)(a), or
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(ii) a copy of any details given under section 530F(4)(b).”,
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(ag) in section 530V by substituting the following for subsection (1):
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“(1) Regulations made under this Chapter may contain such incidental, supplemental or consequential provisions as appear to the Revenue Commissioners to be necessary or expedient—
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(a) to enable persons to fulfil their obligations under this Chapter or under regulations made under this Chapter, or
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(b) to give effect to the proper implementation and efficient operation of the provisions of this Chapter or regulations made under this Chapter.
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(1A) Regulations made under this Chapter shall be laid before Dáil Éireann as soon as may be after they are made and, if a resolution annulling those regulations is passed by Dáil Éireann within the next 21 days on which Dáil Éireann has sat after the regulations are laid before it, the regulations shall be annulled accordingly, but without prejudice to the validity of anything previously done under them.
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(1B) (a) Anything required to be done by a principal under this Chapter or under regulations made under this Chapter may be done by another person acting under the authority of the principal.
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(b) Where anything is done by such other person under the authority of the principal, this Chapter shall apply as if it had been done by the principal.
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(c) Anything purporting to have been done by or on behalf of a principal shall for the purposes of this Chapter be deemed to have been done by the principal or by the principal’s authority, as the case may be, unless the contrary is proved.”,
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and
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(ah) in section 530V by substituting the following for subsection (3):
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“(3) Anything to be done by or under this Chapter by the Revenue Commissioners, other than the making of regulations, may be done by any Revenue officer or may, if appropriate, be done through such electronic systems as the Revenue Commissioners may put in place for the time being for any such purpose.”.
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(2) This section comes into operation on and from the passing of this Act.
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