Vol. 445 No. 6
136 Mr. N. Ahern asked the Minister for Finance if he has considered the various suggestions put to him to reduce or eliminate the abuse of the C45 system in the building industry, including the recommendations from the Central Review Committee under the Programme for Competitiveness and Work, 1994 to 1999; if he will give details of his decisions; and when they will be announced. [292/94]
In view of the concerns which had been raised in relation to the C45 system the Black Economy Monitoring Group was asked to carry out a thorough review of the operation of the C45 system and to make recommendations on action to curb any abuse and to improve the system generally. The groups recommendations were endorsed by the Central Review Committee of the Programme for Competitiveness and Work. The majority of the groups recommendations concerned closer monitoring of the system by the Revenue Commissioners, improved information flow between the Revenue Commissioners and the Department of Social Welfare and the redesign of forms to ensure that sufficient information is available to match income tax and social welfare records. The implementation of these recommendations has commenced and all administrative recommendations will be implemented by the start of the next tax year i.e. 5 April, 1995.
Two of the recommendations would, however, require statutory changes to carry them into effect. The first concern a recommendation that both parties should sign a form prescribed by the Revenue Commissioners at the start of the contract verifying that the C45 system is the most appropriate system in their case. The second relates to the withdrawal of the special recognition given to the gang or group system within the C45 regime.
Both recommendations are under examination within my Department and will be considered by me in good time for the next Finance Act.
