Dáil Éireann díospóireacht -
Tuesday, 13 Jun 2000

Vol. 521 No. 1

Written Answers. - Tax Yield.

David Stanton

Ceist:

151 Mr. Stanton asked the Minister for Finance the total amount in taxation in each year since 1997 on the various motoring fuels; the plans, if any, he has to reduce such taxation in view of the extra costs currently being incurred by motorists as a result of high fuel prices; and if he will make a statement on the matter. [16718/00]

Minister for Finance (Mr. McCreevy)

I am informed by the Revenue Commissioners that the total amount collected in taxation – i.e. excise duty and VAT – in each year since 1997 on the various motor fuels – i.e. for example, petrol, auto diesel and auto LPG – is estimated as follows:–

1997	£978 million
1998	£1,115 million
1999	£1,217 million

The VAT element in these figures is estimated because VAT returns are not required to be completed in a manner which identifies yield from particular goods or services.

I have no plans to reduce the taxation rates on mineral oils.

David Stanton

Ceist:

152 Mr. Stanton asked the Minister for Finance the number of C2 certificates in the construction industry. [16751/00]

David Stanton

Ceist:

153 Mr. Stanton asked the Minister for Finance the number of RCTI certificates that have been issued by the Revenue Commissioners in 1999 and in 2000 to date; if he has satisfied himself that the use of these certificates is being actively monitored; and if he will make a statement on the matter. [16752/00]

David Stanton

Ceist:

154 Mr. Stanton asked the Minister for Finance if he has satisfied himself that guidelines IT 25 are been complied with; and if he will make a statement on the matter. [16753/00]

Minister for Finance (Mr. McCreevy)

I propose to take Questions Nos. 152, 153 and 154 together, as they deal with essentially the same issue.

I am informed by the Revenue Commissioners that the numbers of C2s issued in the calendar year 1999 was 28,366 and the number issued in the period from 1 January 2000 to 28 April 2000 was 22,691. The C2, which enables a subcontractor to receive payments from principal contractors under a contract of self employment without deduction of relevant contracts tax is generally issued at the beginning of the tax year. Accordingly, even though C2s are issued throughout the year, the majority of C2s that will be issued for the tax year 2000-01 would have been issued by 28 April 2000. RCT applies to the construction, forestry and meat processing industries. A record of the number of C2s which apply to the different industries is not readily available but I am informed that the majority of C2s issued would apply to the construction industry.

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 RCT 1 applies also in the meat processing and forestry industries.

The form was introduced in 1996, in accordance with a recommendation of the black economy monitoring group. On the form, the principal and sub-contractor declare that, having regard to the guidelines published by the Revenue Commissioners as to the distinctions between contacts 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 a record of the number of forms RCT 1 issued is not maintained. The forms are available in tax offices and are issued in response to requests from principal contractors for a stock of the forms. A principal contractor would normally maintain a stock of the forms and all the forms issued would not necessarily be used. Accordingly, it is felt that maintaining a record of the number of the forms issued would not provide any meaningful information to Rev enue. The number of the forms that were printed is as follows:

Year 1999:52,000

Year 2000 to date:81,700

The form IT 25 is an information leaflet which has been produced by the Revenue Commissioners to provide guidance to employers as to the distinctions between employment and self-employment status in the construction industry. It contains essentially the same guidelines as are contained on the form RCT 1 and explains the tax and PRSI implications, depending on the nature of the contract.

I am informed by the Revenue Commissioners that a review of the correct categorisation of payments made to contractors is a feature of all Revenue audits. Depending on the nature of the business and an assessment of the tax at risk in a particular business, the question of employment versus self-employment will be given particular attention in certain cases by Revenue auditors. In the case of audits of principal contractors in the industries in which RCT applies, the use of the RCT 1 is monitored.

During 1997 and 1998 a special campaign was undertaken by the Revenue Commissioners to ensure that employees in the construction industry were correctly categorised as employees and that PAYE-PRSI was applied to payments made to them. I am assured by the commissioners that if they become aware that employers in this industry or indeed in any other industry are incorrectly classifying employees as self-employed they will not hesitate to take appropriate action in relation to that industry.