Vol. 495 No. 4
210 Mr. Noonan asked the Minister for Finance if his attention has been drawn to the concerns of the Road Hauliers Association of Ireland in relation to the serious delays in issuing C2 certificates by the Revenue Commissioners to members of its association; the action, if any, he will take to meet its concerns; and if he will make a statement on the matter. [20329/98]
I am informed by the Revenue Commissioners that the concerns of the Road Hauliers Association of Ireland relate to the extension of relevant contracts tax, RCT, to certain additional operations in the meat processing industry, including haulage of meat, and also to the alleged lack of publicity relating to the introduction of these new measures. The extension, which became effective from 6 October 1998, brings the meat industry into line with other industries, such as construction and forestry, in which haulage activities have been subject to RCT for many years.
RCT requires principal contractors to deduct tax at 35 per cent from payments to subcontractors other than certified subcontractors. A certified subcontractor is one to whom Revenue has issued a certificate of authorisation, known as a C2, and for whom the principal contractor has received a relevant payments card, authorising him to make payments without deduction of tax.
Details of the extension were included in the June edition of Tax Briefing, which is issued by Revenue to all tax practitioners on their records. A further, more detailed, article was included in the September editions of Tax Briefing. It is understood that details of the amendment were also notified to accountants and tax practitioners through their professional bodies. However, it appears that the Irish Road Hauliers Association and most hauliers were unaware of the effect of the change.
RCT deducted by principal contractors is available for set-off against tax liabilities of the subcontractor, including income tax, PAYE, PRSI and VAT liabilities. Subject to any outstanding tax liabilities, a monthly claim for RCT can be made. Because of the particular difficulties of hauliers, Revenue will accept RCT repayment claims from hauliers at shorter intervals.
I am informed by the Revenue Commissioners that they will, in the initial period, give priority to processing applications for C2s and to claims for repayment or set-off of RCT received from hauliers in the meat industry. Only a small number of applications for a C2 have been received from hauliers to date and all such applications are being dealt with expeditiously.
