S.I. No. 239/1985 - Income Tax (Construction Contracts) Regulations, 1985.

S.I. No. 239 of 1985.

INCOME TAX (CONSTRUCTION CONTRACTS) REGULATIONS, 1985.

The Revenue Commissioners, in exercise of the powers conferred on them by section 17 of the Finance Act, 1970 (No. 14 of 1970) (inserted by the Finance Act, 1976 (No. 16 of 1976)), hereby make the following Regulations:

1. These Regulations may be cited as the Income Tax (Construction Contracts) Regulations, 1985.

2. As respects estimates of tax due, made on or after the commencement of these Regulations, the Income Tax (Construction Contracts) Regulations, 1971 ( S.I. No. 1 of 1971 ), are hereby amended, in Regulation 12—

( a ) in paragraph (1)—

(i) by the substitution for "Where the Revenue Commissioners have reason to believe" of "Where the inspector, or such other officer as the Revenue Commissioners may nominate to exercise the powers conferred by this Regulation (hereafter in this Regulation referred to as `other officer'), has reason to believe".

(ii) by the substitution for "they may make an estimate" of "the inspector or other officer may make an estimate", and

(iii) by the substitution of "his" for "their",

( b ) in paragraph (2) (a)—

(i) by the substitution for "the Revenue Commissioners" of "the inspector or other officer", and

(ii) by the substitution for "fourteen days" of "thirty days",

and

( c ) in paragraph (3), by the substitution for "the Revenue Commissioners" of "the inspector or other officer",

and the said paragraph (1) (apart from subparagraphs (a), (b) and (c) thereof), the said paragraph (2) (a) and the said paragraph (3), as so amended, are set out in the Table to this Regulation.

TABLE

(1) Where the inspector, or such other officer as the Revenue Commissioners may nominate to exercise the powers conferred by this Regulation (hereafter in this Regulation referred to as "other officer"), has reason to believe that the total amount of tax which a principal was liable under the principal section and these Regulations to remit in respect of the respective income tax months comprised in any year was greater than the amount of tax (if any) paid by the principal in respect of the said months then, without prejudice to any other action which may be taken, the inspector or other officer may make an estimate in one sum of the total amount of tax which in his opinion should have been paid in respect of the income tax months comprised in that year and may serve notice on the principal specifying—

(2) Where notice is served on a principal under paragraph (1) of this Regulation—

( a ) the principal may, if he claims that the total amount of tax or the balance of tax remaining unpaid is excessive, on giving notice in writing to the inspector or other officer within the period of thirty days from the service of the notice, appeal to the Appeal Commissioners,

(3) A notice given by the inspector or other officer under paragraph (1) of this Regulation may extend to two or more years.

GIVEN this 16th day of July, 1985.

L. REASON,

Revenue Commissioner.

EXPLANATORY NOTE.

These regulations amend the Income Tax (Construction Contracts) Regulations, 1971, so as to transfer from the Revenue Commissioners to an Inspector of Taxes, or such other officer as the Revenue Commissioners may nominate for the purpose, the statutory authority for making estimates of tax deductible from payments made to an uncertified subcontractor where a principal contractor fails to remit such tax to the Revenue.

In addition, the time allowed to a principal contractor to appeal against such an estimate is extended from 14 days to 30 days.

The regulations apply to estimates made on or after the date on which the regulations are made.