Dáil Éireann díospóireacht -
Tuesday, 26 Mar 1996

Vol. 463 No. 3

Written Answers. - Tax Clearance Certificate Requirements.

Mary Harney

Ceist:

72 Miss Harney asked the Minister for Finance his views on whether a single tax clearance certificate should be sufficient for a company doing business with different State companies or Departments; and if he will make a statement on the matter. [6090/96]

Minister for Finance (Mr. Quinn)

The Government is in agreement with the concept of a single tax clearance certificate for companies doing business with State organisations as a means of reducing unnecessary tax compliance burdens, especially in the case of small to medium-sized enterprises.

The first stage in the process was the announcement in the 1994 Budget Statement of the introduction of a scheme of single tax clearance certificates for public sector contracts which was implemented with effect from 15 August 1994. The scheme provides that a single tax clearance certificate will be valid for all public sector contracts awarded to contractors within a 12 month period commencing with the first issue of the certificate. The single tax clearance certificate can readily be renewed at the close of the 12-month period by direct application to the Collector-General. The indications are that this scheme is working well.

The single tax clearance scheme currently applies to the award of public sector contracts only. However, my officials are now working with the Revenue Commissioners with a view to extending the scheme to grants and subsidies paid by the State. As many companies are also in receipt of such payments, the extension of the scheme in this area would further ease the tax compliance burden on business.