The conditions to be met in order to qualify for a C2 certificate, which enables the applicant to receive payments from principal contractors without deduction of income tax, are as set out in Section 17 (7) (a) Finance Act 1970 (as amended). In summary form, these conditions are:
(i) that the person is, or is about to become, a sub-contractor engaged in the business of carrying out construction contracts (which last year — Section 28, Finance Act 1992 — was extended to include forestry operations and meat processing operations),
(ii) that the business is or will be carried on from a fixed place of business and has the equipment etc. required,
(iii) that proper records are kept,
(iv) that the person and his partners etc., have a record of tax compliance over the qualifying period, which is usually three years.
However, the 1970 Act, in Section 17 (7) (b), gives Revenue the discretion to issue a C2 even when the full requirements are not met. Accordingly, each case will be considered by Revenue on its own merits.