I propose to take Questions Nos. 361 to 363, inclusive, together.
My Department liaises with the Revenue Commissioners directly on tax related issues as the need arises, however, I can confirm that there has been no communication between my Department’s Finance Unit and the Revenue Commissioners specifically in relation to RCT in schools.
The Deputy will probably be aware that, under tax law, a school authority is regarded by the Revenue Commissioners as the "Principal Contractor" for tax purposes when it is delivering a building project. My Department advises a school authority of this at the time the grant for the works is being approved. Schools are also advised that the Revenue Commissioners have published a guidance document for school management authorities in this matter which is available on both my Departments website and the Revenue Commissioners’ website.
The main requirement for a school to meet its obligations is to register with the Revenue Commissioners’ online system and to follow the Revenue Commissioners’ guidance in relation to deducting and paying over tax, where this arises, for the contractor carrying out the works.
It is a matter for the Revenue Commissioners to decide, in the context of the specific tax affairs of the individual contractors employed by schools, whether or not tax is to be applied to the service being provided and at what rate that tax should be applied.
Before the grant for the works can be drawn down from my Department, a school authority must confirm to my Department that it has complied with its tax obligations. A grant will not be paid in the absence of this confirmation. However, the tax treatment itself of the services provided lies within the competency of the Revenue Commissioners and this aspect is, therefore, strictly a matter between a school authority and that Body. My Department does not keep the statistical data sought by the Deputy for these reasons.