asked the Minister for Finance when a C2 certificate will be furnished by the Revenue Commissioners to a person (details supplied) in County Westmeath who for the last four years has only paid persons with C2 certificates in his trade and who, due to a clerical oversight, omitted on some occasions to use a deduction card; who, prior to four years ago, only paid persons with gross payments who did not have C2 certificates and who by now have paid their tax liabilities, without demand of an alleged penalty of £12,000 by the Revenue Commissioners and by reason of the fact that the Revenue Commissioners have suffered no loss of tax arising from the omissions of this person; and if he will make a statement regarding the policy of the Revenue Commissioners in relation to this and similar cases.
Written Answers. - Subcontractor's Certificate.
The Revenue Commissioners have advised me that, on 26 March 1982 the inspector of taxes, construction industry division, wrote to the taxpayer who has a record of non-compliance extending back to 1974-75, advising him formally of his obligations as a principal contractor under the provisions relating to the deduction of income tax from payments made by principal contractors in the construction industry to sub-contractors. Nevertheless non-compliance on the part of the taxpayer continued and estimates were raised on him under the relevant statutory provisions on 2 March 1989 in the amount of £16,079.96 for the years 1980-81 to 1987-88. There can be no question of the issue by the Revenue Commissioners of a subcontractor's certificate (Form C2) until the arrears of tax mentioned have been cleared by him.
It is the policy of the Revenue Commissioners to enforce strictly the statutory provisions governing the tax treatment of payments made to sub-contractors which are contained in section 17 of the Finance Act, 1970, as amended, and the regulations made thereunder. The commissioners have informed me that there are no grounds for the assumption that the failure of the taxpayer to comply with the statutory requirements has not resulted in loss of tax to the Exchequer.