Dáil Éireann díospóireacht -
Thursday, 5 May 1994

Vol. 442 No. 4

Written Answers. - Tax Clearance Scheme.

Bernard J. Durkan

Ceist:

69 Mr. Durkan asked the Minister for Finance if it is a standard requirement that tax clearance certificates are requested in each instance where payments from public funds are made to persons or companies, either on foot of specific contracts, the supply of goods or services or other contractual arrangements; if there have been any exceptions to this rule; and if he will make a statement on the matter.

Minister for Finance (Mr. B. Ahern)

All public sector bodies awarding contracts of a value of £5,000 or more, inclusive of VAT, are obliged under the provisions of the tax clearance scheme to require production by the contractor of a current tax clearance certificate issued by the Revenue Commissioners.

The only exceptions to this rule are in the case of (i) construction contracts where the contractor is in possession of a current subcontractor's certificate of authorisation, C2 certificate, and (ii) non-resident contractors who must produce a statement as to their status from the Revenue Commissioners.

There are no other exemptions from the operation of the tax clearance procedures. I am aware that there have been incidents where certain public bodies have not operated the procedures and my Department is taking steps to remedy this situation by contacting the relevant accounting officers.