Dáil Éireann Debate, Tuesday - 12 June 2018
361. Deputy Joan Burton asked the Minister for Education and Skills if he is satisfied that all payments made by schools for services covered by relevant contracts tax, RCT, were correctly treated by those schools for tax purposes in regard to the moneys expended by schools on construction activities including the summer works schemes; and if he will make a statement on the matter. [24809/18]
View answer362. Deputy Joan Burton asked the Minister for Education and Skills the number of schools which received funding under the summer works schemes or other projects which may fall within the RCT system audited by his Department in each of the years 2013 to 2017; the proportion of the number of the schools involved audited; the proportion of the spend involved in those audits; the number of cases in which his Department was concerned over the operation of RCT in tabular form; and if he will make a statement on the matter. [24810/18]
View answer363. Deputy Joan Burton asked the Minister for Education and Skills if his Department has had meetings with the Revenue Commissioners regarding the operation of RCT by schools; if so, the dates of those meetings; and if he will make a statement on the matter. [24811/18]
View answerI propose to take Questions Nos. 361 to 363, inclusive, together.
My Department liaises with the Revenue Commissioners directly on tax related issues as the need arises, however, I can confirm that there has been no communication between my Department’s Finance Unit and the Revenue Commissioners specifically in relation to RCT in schools.
The Deputy will probably be aware that, under tax law, a school authority is regarded by the Revenue Commissioners as the "Principal Contractor" for tax purposes when it is delivering a building project. My Department advises a school authority of this at the time the grant for the works is being approved. Schools are also advised that the Revenue Commissioners have published a guidance document for school management authorities in this matter which is available on both my Departments website and the Revenue Commissioners’ website.
The main requirement for a school to meet its obligations is to register with the Revenue Commissioners’ online system and to follow the Revenue Commissioners’ guidance in relation to deducting and paying over tax, where this arises, for the contractor carrying out the works.
It is a matter for the Revenue Commissioners to decide, in the context of the specific tax affairs of the individual contractors employed by schools, whether or not tax is to be applied to the service being provided and at what rate that tax should be applied.
Before the grant for the works can be drawn down from my Department, a school authority must confirm to my Department that it has complied with its tax obligations. A grant will not be paid in the absence of this confirmation. However, the tax treatment itself of the services provided lies within the competency of the Revenue Commissioners and this aspect is, therefore, strictly a matter between a school authority and that Body. My Department does not keep the statistical data sought by the Deputy for these reasons.
