Dáil Éireann Debate, Wednesday - 15 April 2015
130. Deputy Paul Murphy asked the Minister for Finance if the national C2 monitoring group is still operational; and if not, the way in which the Revenue Commissioners monitor subcontractors who were formerly C2 registered, following the cancellation of C2 registration in January 2012. [13903/15]
View answerAs I explained to the Deputy in my response on the 4 March to Parliamentary Question No. 9433/15, the paper based Relevant Contracts Tax (RCT) system was replaced by the electronic Relevant Contracts Tax (eRCT) system and the paper based C2 Certificate was discontinued with effect from 1 January 2012.
The Deputy can be assured, however, that monitoring of abuses of taxes and duties, including the eRCT system, is a key element of Revenue's day to day compliance programmes as evidenced by the significant resources committed by Revenue to compliance interventions in the construction sector. The eRCT system is a much more efficient way for Revenue to actively manage subcontractors' tax compliance risks than the manual processes that would have previously applied in the paper based system. I am aware that the extensive amount of data available from the eRCT system is used by Revenue in their risk analysis systems to determine suitability for compliance interventions. Additionally, the system facilitates the periodic automatic review of the deduction rates of the entire registered subcontractors' case base and the updating of deduction rates to reflect the ongoing compliance record of the subcontractor. This type of review would have been impossible under the old arrangements.
