Vol. 489 No. 6
355 Mr. Allen asked the Minister for Finance if he has issued an instruction to the Revenue Commissioners to insist that all companies involved in subcontracting work ensure that the organisations they are subcontracting to are limited companies, even though they possess C2 certificates; and, if so, the reason this instruction was issued. [8739/98]
I have not issued such an instruction to the Revenue Commissioners.
The Deputy may be aware that the Revenue Commissioners have, for some time, been engaged in a nation-wide operation designed to check that the correct tax regime is applied in relation to persons employed in the construction industry. The C2 certificate, to which the Deputy refers, is part of the relevant contracts tax system which applies only where the contract between the person making the payment and the person in receipt of the payment is of a self-employment nature. Where the contract is an employment contract, PAYE should be operated by the employer in relation to any payments made under that contract and appropriate PRSI and levies should also be deducted.
The Revenue Commissioners have no role in deciding who should be awarded a contract by a principal contractor. This is a commercial decision which is made by the principal contractor. The Revenue Commissioners' role is to ensure that the correct tax regime — including where applicable, PRSI and levies — is applied to payments under that contract.
