Mildred Fox
Ceist:247 Miss Fox asked the Minister for Finance the number of inspectors the Revenue Commissioners have to detect abuses of the RCT 1 form in the building industry; and if he will make a statement on the matter. [11993/98]
Written Answers. - Taxation Forms.
I am informed by the Revenue Commissioners that the form RCT 1 is a declaration completed jointly by a principal contractor and a sub-contractor who are about to enter into a relevant contract, as defined in section 530 of the Taxes Consolidation Act, 1997. A relevant contract, in the case of the building industry, is a contract to perform certain construction operations, not being a contract of employment.
The form was introduced in 1996, in accordance with a recommendation from the black economy monitoring group. On the form, the principal and sub-contractor declare that, having regard to the guidelines which from time to time may be published by the Revenue Commissioners as to the distinctions between contracts of employment and relevant contracts, they have satisfied themselves that, in their opinion, the contract which they propose to enter into is not a contract of employment.
I am informed that Revenue currently has 45 members of staff engaged in a nationwide campaign aimed at detecting cases in the building industry in which persons who are employees have been incorrectly classified as self-employed sub-contractors. In addition, approximately ten Revenue audit staff continue to be engaged in comprehensive Revenue audits in the construction industry. As part of such audits, the correct classification of employees for tax purposes would be considered.
Mildred Fox
Ceist:248 Miss Fox asked the Minister for Finance the number of RCT-DC and C2 forms issued in the past year; and if he will make a statement on the matter. [11994/98]
I am informed by the Revenue Commissioners that the number of forms RCT-DC issued in the year ended 30 April 1998 was 236,666 and the number of C2s issued in the same period was 30,380. It should be noted that the number of forms RCT-DC issued represents the number of blank forms issued by Inspectors of Taxes to principal contractors. Revenue does not have a figure for the number of completed forms issued by principal contractors to subcontractors.
Mildred Fox
Ceist:249 Miss Fox asked the Minister for Finance if he has satisfied himself that the form RCT 1 system is an effective one; and the plans, if any, he has to make a change to the system. [11995/98]
I am informed by the Revenue Commissioners that the form RCT 1 is a declaration completed jointly by a principal contractor and a sub-contractor who are about to enter into a relevant contract, as defined in section 530 of the Taxes Consolidation Act, 1997. A relevant contract, in the case of the building industry, is a contract to perform certain construction operations, not being a contract of employment.
On the form, the principal and sub-contractor declare that, having regard to the guidelines which from time to time may be published by the Revenue Commissioners as to the distinctions between contracts of employment and relevant contracts, they have satisfied themselves that, in their opinion, the contract which they propose to enter into is not a contract of employment.
The form was introduced in 1996, in accordance with a recommendation from the black economy monitoring group. The black economy monitoring group operates under the aegis of Partnership 2000. This group includes representatives from employers, from the unions, from Revenue and from the Department of Social, Community and Family Affairs. There is a special subcommittee of the black economy monitoring group which deals with the construction industry. It was this subcommittee which originally recommended that the RCT 1 declaration be introduced. Members of the group are free to call for a meeting of this group, at which any difficulties can be brought to the notice of Revenue and the Department of Social, Community and Family Affairs. Revenue are currently undertaking a nationwide campaign aimed at detecting cases in the building industry in which persons who are employees have been incorrectly classified as self-employed sub-contractors. It is expected that the first phase of the campaign will be completed shortly. At that stage, the usefulness of the RCT 1 procedure will be reviewed.