Vol. 502 No. 3
272 Mr. Haughey asked the Minister for Finance the position regarding building and construction workers who are in effect self-employed under the C45 system but who wish to pay tax and PRSI as normal employees; the plans, if any, he has to deal with this problem; and if he will make a statement on the matter. [7710/99]
The employment status of building and construction workers who are self-employed under the C45 system but who wish to pay tax and PRSI as normal employees is primarily a matter of fact and law for the individuals involved. I am informed by the Revenue Commissioners that self-employed building and construction workers, like all other self-employed individuals, pay tax under the self-assessment tax system and that employees pay tax under the PAYE system. The Commissioners must of course be satisfied that the correct taxation system is being used. In this context it should be noted that during 1997/1998 the Revenue Commissioners undertook a very intensive special project to monitor all aspects of compliance in the construction industry. In the course of that project more than 7,000 principal contractors were visited. No problems were found in 52 per cent of cases. Of the balance, 76 per cent agreed with Revenue rulings. The remainder are subject to different aspects of follow-up action which may include additional visits, a comprehensive Revenue audit and assessments of additional tax where necessary.
I am also informed by the Revenue Commissioners that they have recently produced two new booklets as guides for principal contractors and subcontractors to assist them in making the correct decisions in these matters. Copies of the booklets will be sent to the Deputy under separate cover.
