Dáil Éireann Debate, Tuesday - 27 September 2011
95 Deputy Jim Daly asked the Minister for Finance the reason he will not permit local authorities to make payments to subcontractors under the RCT 35 return in the absence of a valid C2 certificate which is the law laid down by the Revenue Commissioner as a method of payment between all principle and subcontractors in the State; and if he will make a statement on the matter. [26309/11]
Amharc ar fhreagraCircular 43/2006 issued by my Department advised Government Departments and other public sector bodies concerned with awarding public sector contracts of the procedures relating to tax clearance.
In the case of sub-contractors on any public sector contract of a value of €10,000 (inclusive of VAT) or more, the contracting authority should, when advertising the main contract, state that it will be a condition for the award of the contract that all sub-contractors employed on the project must produce a tax reference number where payments exceed €650. Records of tax reference numbers must be kept by the contractor and be available for inspection where requested by the Revenue Commissioners.
Where payments exceed €2,600 in any 12 month period the sub-contractor will be required to produce either a current tax clearance certificate or a current C2 certificate. It should be made clear to sub-contractors that payments under a contract are at all times conditional on compliance with these requirements. It will be the responsibility of the relevant contractor to ensure that any sub-contractor employed by him complies with these requirements. In all cases contracting authorities must ensure that contractors have complied with these requirements.
It should be emphasised in the case of sub-contractors in the construction, forestry and meat processing industries that, in the absence of a C2 certificate, tax must continue to be deducted at source at the rate of 35 per cent in accordance with Section 531 of the Taxes Consolidation Act, 1997 as amended not withstanding the fact that a tax clearance certificate has been furnished under these arrangements.
96 Deputy Pearse Doherty asked the Minister for Finance the amount raised for the Exchequer during 2010 by the income levy; and the amount that would have been raised were the income levy applied only to those earning in excess of €30,000 per annum. [25654/11]
Amharc ar fhreagraThe Income Levy was collected by the Revenue Commissioners as a component of Income Tax. I am informed by the Revenue Commissioners that it is estimated that €1,446 million was collected from the Income Levy in the calendar year 2010. However, as is normal, it would have been expected that the total Income Levy liability for the income tax year 2010 would be higher at €1,710 million and the difference would have been collected in 2011/12. I am advised by the Revenue Commissioners that the estimated full year yield to the Exchequer, estimated by reference to 2010 incomes, of confining the Income Levy to all income earners earning in excess of €30,000 per annum, and double that amount for married couples, would have been of the order of €1,405 million.
These figures are estimates from the Revenue tax-forecasting model using actual data for the year 2009 adjusted as necessary for income and employment trends for the year 2010. They are therefore provisional and may to be revised.
97 Deputy Pearse Doherty asked the Minister for Finance the revenue that would be raised for the Exchequer by reducing capital acquisition tax thresholds by 25% and increasing the CAT rate by 10%. [25655/11]
Amharc ar fhreagraI am advised by the Revenue Commissioners that the estimated full year yield to the Exchequer from increasing the Capital Acquisitions Tax rate by 10%, based on the expected outturn in 2011, could be in the region of €110 million, assuming no change in the existing thresholds. The additional full year yield from existing taxpayers from reducing the existing thresholds by 25% and applying the proposed rate of 35% to the additional amounts thus brought into charge is estimated to be of the order of €50 million. Revenue do not receive information on gifts and inheritances which currently do not have to be declared so it is not possible to estimate the potential yield if such benefits were brought into the tax net. These estimates are based on transactions recorded in 2010, the latest year for which the necessary detailed information is available. It should be noted that these estimates are based upon an assumption that there would be no behavioural impact from these changes, which could lead to a less than expected impact on Exchequer yield. In addition, the realisation of any estimated yield from an increase in taxation on assets related to property is subject to movements in the value of such assets currently occurring in the economy.
