Dáil Éireann díospóireacht -
Thursday, 14 Dec 1995

Vol. 459 No. 8

Written Answers. - Construction Trade Tax.

Noel Ahern

Ceist:

68 Mr. N. Ahern asked the Minister for Finance if he will make a statement in relation to people in the construction trade working on a C45 basis; when the system was introduced; if it was introduced when full PRSI for the self-employed was introduced; if clients have paid their full tax liabilities on the C45; if it is necessary to complete a balancing statement later for PRSI purposes; and if a person has the option of doing this on a selective basis for social welfare purposes. [19081/95]

Minister for Finance (Mr. Quinn)

I have been advised by the Revenue Commissioners that the system of tax deductions for certain sub-contractors in the construction industry, which has since become known as the C45 system, was introduced by section 17 of the Finance Act, 1970 with effect from 6 April 1970. Full PRSI for self-employed persons was introduced by Part III, sections 10 to 18 of the Social Welfare Act, 1988.

Sub-contractors in the construction industry who are paid on a C45 basis are self-employed persons and as such are required to furnish returns of income in the manner applicable to self-employed persons generally. The amounts deducted under the C45 system are credited against the final liabilities of the individual in respect of tax and PRSI.

There is no selective basis of making a return for PRSI purposes. An individual is obliged under the self-assessment system to submit an annual return of income to the Revenue Commissioners from which his liability to tax and PRSI is determined.