Finance Act 2011

Chapter 4

Income Tax, Corporation Tax and Capital Gains Tax.

Relevant contracts tax.

20.— (1) The Principal Act is amended—

(a) in section 520(1), in the definition of “relevant payment”, by substituting the following for paragraph (ii):

“(ii) relevant payments as defined for the purpose of Chapter 2 of this Part,”,

(b) in section 525(6) by substituting “that Chapter” for “section 531(1)”,

(c) in section 530(1) by inserting the following after the definition of “certified subcontractor”:

“ ‘chargeable period’ has the same meaning as in section 321(2);”,

(d) in section 530(1) by inserting the following after the definition of “the contractor”:

“ ‘deducted tax’ has the meaning given to it in section 530P;

‘deduction authorisation’ has the meaning given to it in section 530D;

‘deduction summary’, in relation to a return period, means a statement issued by the Revenue Commissioners to a registered principal setting out, in summary form, the details contained in deduction authorisations issued to that principal during that return period, adjusted, where adjustments are required, in accordance with regulations made under this Chapter, and includes a statement that no such deduction authorisations were issued, where that was the case;”,

(e) in section 530(1) by inserting the following after the definition of “director”:

“ ‘due date’, in relation to a return period, means—

(a) the day that is 14 days after the end of that return period, or

(b) the day that is 23 days after the end of that return period, in a case where the return for that period is made by electronic means in accordance with Chapter 6 of Part 38 and the remittance of the amount of tax that the person was liable to remit to the Collector-General under this Chapter in respect of that period is made by such electronic means as are required by the Revenue Commissioners, if the return and the remittance concerned are made by that day;

‘electronic means’ has the same meaning as in section 917EA(1);”,

(f) in section 530(1) by inserting the following after the definition of “qualifying period”:

“ ‘registered principal’ means a principal included in a register of principals kept and maintained by the Revenue Commissioners for the purposes of this Chapter;”,

(g) in section 530(1) by inserting the following after the definition of “relevant operations”:

“ ‘relevant payment’ means a payment made by a principal to whom section 530A applies in respect of a relevant contract;”,

(h) in the definition of ‘return period’, by inserting “, or where no such period is specified, an income tax month” after “Collector-General”

(i) in section 530(1) by inserting the following after the definition of ‘return period’:

“ ‘Revenue officer’ means any officer of the Revenue Commissioners;”,

(j) in section 530(1) by substituting the following for the definition of “subcontractor”:

“ ‘subcontractor’ means the contractor under a relevant contract where the principal under that contract is a person to whom section 530A applies;”,

(k) by inserting the following after section 530:

“Principal to whom relevant contracts tax applies.

530A.— (1) Subject to subsections (2) and (3), this section applies to a principal who is—

(a) in respect of the whole or any part of a relevant contract, the contractor under another relevant contract,

(b) a person—

(i) carrying on a business that includes the erection of buildings or the development of land (within the meaning of section 639(1)) or the manufacture, treatment or extraction of materials for use, whether used or not, in construction operations,

(ii) carrying on a business of meat processing operations in an establishment approved and inspected in accordance with the European Communities (Fresh Meat) Regulations, 1997 ( S.I. No. 434 of 1997 ) or, as the case may be, the European Communities (Fresh Poultry-meat) Regulations, 1996 ( S.I. No. 3 of 1996 ), or

(iii) carrying on a business that includes the processing (including cutting and preserving) of wood from thinned or felled trees in sawmills or other like premises or the supply of thinned or felled trees for such processing,

(c) a person connected with a company carrying on a business mentioned in paragraph (b),

(d) a local authority, a public utility society (within the meaning of section 2 of the Housing Act 1966 ) or a body referred to in subparagraph (i) or (ii) of section 12(2)(a) of that Act or section 19 or 45 of that Act,

(e) a Minister of the Government,

(f) any board or body established by or under statute or any board or body established by or under royal charter and funded wholly or mainly out of moneys provided by the Oireachtas, or

(g) a person who carries on any gas, water, electricity, hydraulic power, dock, canal or railway undertaking.

(2) A person carrying on a business shall not be deemed to be a person of a kind specified in subsection (1)(b) by reason only of the fact that in the course of that business such person erects buildings or develops land for the use or occupation of such person or employees of such person.

(3) (a) Subject to paragraph (b), a person shall be deemed not to be a principal of a kind specified in subsection (1)(c) where the following conditions are met—

(i) in the performance of a relevant contract, the person makes a payment to a subcontractor solely in connection with construction operations carried out in or on buildings or land to be used or occupied by such person or the employees of such person, and

(ii) the person does not carry on a business of the type mentioned in subsection (1)(b)(i).

(b) Where a person is a principal of a kind specified in subsection (1)(c) by reason of the fact that such person is connected with a company carrying on a business of the type mentioned in subsection (1)(b)(i), paragraph (a) shall apply only where in addition to the conditions specified in that paragraph such person is a company.

Notification of contract by principal.

530B.— (1) Upon entering into a relevant contract, and in a case where subsection (2) applies, a principal to whom section 530A applies shall provide to the Revenue Commissioners—

(a) information in relation to—

(i) the identity of the subcontractor,

(ii) the estimated contract value,

(iii) the estimated contract duration, and

(iv) the location or locations at which relevant operations under the contract are to take place,

and

(b) a declaration stating that the principal is satisfied, if that is the case having regard to guidelines published by the Revenue Commissioners as to the distinction between contracts of employment and relevant contracts, that the named subcontractor is not performing the contract or any part of it as an employee of the principal.

(2) Where a relevant contract was entered into prior to commencement of this section, a principal to whom section 530A applies shall provide the information and declaration referred to in subsection (1) if a payment is outstanding under that contract, or under that contract as amended, on such commencement.

(3) The information and declaration required under subsection (1) shall be provided by electronic means, and the relevant provisions of Chapter 6 of Part 38 shall apply.

(4) The Revenue Commissioners shall make regulations for the purposes of this section and such regulations may provide for—

(a) the type of electronic means by which principals shall communicate with the Revenue Commissioners,

(b) the format of such communication,

(c) the timing of such communication,

(d) the nature of any acknowledgement to be issued by the Revenue Commissioners, and

(e) any other related matters.

Notification of relevant payment by principal.

530C.— (1) Immediately before a principal makes a relevant payment to a subcontractor, the principal shall notify the Revenue Commissioners of his or her intention to make such a payment to the subcontractor and of the amount of that payment.

(2) The notification required under subsection (1) shall be given by electronic means and the relevant provisions of Chapter 6 of Part 38 shall apply.

(3) The Revenue Commissioners shall make regulations for the purposes of this section and such regulations may provide for—

(a) the type of electronic means by which principals shall communicate with the Revenue Commissioners,

(b) the format of such communication,

(c) the timing of such communication,

(d) the details in relation to the subcontractor which are to be supplied by the principal,

(e) the nature of any acknowledgement to be issued by the Revenue Commissioners,

(f) the circumstances in which and the means by which a principal may cancel notification given,

(g) the circumstances in which notification under this section is deemed to be cancelled, and

(h) any other related matters.

Deduction authorisation.

530D.— (1) Where a principal notifies the Revenue Commissioners in accordance with section 530C, the Revenue Commissioners shall issue a deduction authorisation to the principal in respect of the relevant payment to which the notification relates.

(2) A deduction authorisation issued under subsection (1) shall—

(a) specify, in accordance with section 530E, the rate of tax to be deducted from the payment, including, as appropriate, zero, and

(b) authorise the principal concerned to deduct a specified sum of tax or no tax from the relevant payment.

(3) At the end of each return period, the Revenue Commissioners shall issue a deduction summary to each registered principal in respect of that return period.

(4) The Revenue Commissioners shall issue deduction authorisations and deduction summaries by electronic means.

(5) The Revenue Commissioners shall make regulations for the purposes of this section and such regulations may provide for—

(a) the type of electronic means to be used by the Revenue Commissioners,

(b) the format of such communication,

(c) the period of validity of deduction authorisations including circumstances in which they shall be deemed to be cancelled,

(d) the obligations on principals to satisfy themselves that deduction summaries accurately reflect details of all relevant payments made, and tax deducted, in the return period concerned, and

(e) any other related matters.

Rates of tax.

530E.— (1) For the purpose of section 530D(2), the rate of tax—

(a) shall be zero where the Revenue Commissioners have made a determination that the subcontractor is a person to whom section 530G applies,

(b) shall be the standard rate (within the meaning of section 3) in force at the time of payment where the Revenue Commissioners have made a determination that the subcontractor is a person to whom section 530H applies,

(c) shall be 35 per cent where the Revenue Commissioners have made a determination that the subcontractor is a person to whom neither section 530G nor section 530H apply.

(2) Any reference to a determination in subsection (1) is to the most recent determination made by the Revenue Commissioners under section 530I or as determined on appeal in accordance with that section, in respect of the subcontractor concerned.

Obligation on principals to deduct tax.

530F.— (1) A principal to whom a deduction authorisation is issued under section 530D shall deduct tax from the relevant payment concerned only in accordance with the terms of the deduction authorisation.

(2) Subject to subsection (3), a principal to whom section 530A applies who makes a relevant payment to a subcontractor in circumstances other than those referred to in subsection (1) shall—

(a) be liable to pay tax to the Revenue Commissioners at the rate of 35 per cent on the amount of the relevant payment, and

(b) without prejudice to any other penalty to which the principal may be liable and without prejudice to section 1078, be liable to a penalty of €5,000 or the amount of the tax payable under paragraph (a), whichever is the lesser, unless the principal submits the details of the relevant payment in the return required under section 530K for the period concerned, on or before the due date for that return.

(3) (a) Where subsection (2)(a) applies and the principal submits the details of the relevant payment in a return for the relevant return period, the Revenue Commissioners shall establish the amount of tax that would have been due from the principal in respect of that payment had the rate of tax been the rate of tax last notified by the Revenue Commissioners to the subcontractor concerned under section 530I and, notwithstanding subsection (2)(a), the tax due from the principal in respect of that payment by virtue of that subsection shall be the amount so established.

(b) Where paragraph (a) applies, the Revenue Commissioners shall notify the principal of whether any adjustment to his liability for the period arises on account of the application of that paragraph and the Revenue Commissioners may include provision in any regulations made by them under this Chapter to give effect to this subsection.

(4) Where a principal makes a relevant payment to a subcontractor, the principal shall issue a copy of the deduction authorisation in relation to that payment to the subcontractor.

(5) The amount of tax which a principal is liable to deduct under subsection (1) from a relevant payment shall be due and payable by the principal concerned to the Revenue Commissioners in respect of the return period in which the payment is made.

(6) The amount of tax which a principal is liable to pay to the Revenue Commissioners by virtue of subsection (2)(a) shall be due and payable by the principal concerned to the Revenue Commissioners in respect of the return period in which the payment is made.

Zero rate subcontractor.

530G.— (1) Subject to subsections (2) and (3), this section applies to a person in relation to whom the Revenue Commissioners are satisfied that the person—

(a) is or is about to become a subcontractor engaged in the business of carrying out relevant operations,

(b) carries on or will carry on business from a fixed place established in a permanent building and has or will have such equipment, stock and other facilities as in the opinion of the Revenue Commissioners are required for the purposes of the business,

(c) properly and accurately keeps and will keep any business records to which section 886(2) refers and any other records normally kept in connection with such a business,

(d) has throughout the previous 3 years complied with all the obligations imposed by the Tax Acts, the Capital Gains Tax Acts and the Value-Added Tax Acts, in relation to—

(i) the payment or remittance of taxes, interest and penalties,

(ii) the delivery of returns, and

(iii) the supply, on request, of accounts or other information to a Revenue officer,

and

(e) in the case of a person who was resident outside the State at some time during the previous 3 years, has throughout that period complied with all the obligations comparable to those mentioned in paragraphs (c) and (d) imposed by the laws of the country in which that person was resident at any time during that period.

(2) This section does not apply to a person—

(a) engaged in the business of carrying out relevant contracts in partnership unless all persons in that partnership are persons to whom this section applies and unless the partnership business itself has complied with the obligations referred to in subsection (1) and the Revenue Commissioners are satisfied that it will continue to comply with those obligations,

(b) which is a company, unless each director of the company and any person who is either the beneficial owner of, or able, directly or indirectly, to control more than 15 per cent of the ordinary share capital of the company, are persons to which paragraphs (c) and (d) of subsection (1) refer,

(c) who is or was a proprietary director or proprietary employee of a company engaged in the business of carrying out relevant contracts unless the company is a person to whom paragraphs (c) and (d) of subsection (1) refer,

(d) who, for good reason, the Revenue Commissioners consider unlikely to comply in the future with the obligations referred to in paragraph (c) or (d) of subsection (1), or

(e) if relevant operations (being construction operations, forestry operations or meat processing operations, as the case may be) similar to those being carried out or to be carried out by that person were previously, or are being, carried out by another person (in this subsection referred to as the ‘second-mentioned person’), and the second-mentioned person—

(i) is a company connected (within the meaning of section 10 as it applies for the purposes of the Tax Acts) with the first-mentioned person or would have been such a company but for the fact that the company has been wound up or dissolved without being wound up,

(ii) is a company and the first-mentioned person is a partner in a partnership in which—

(I) a partner is or was able, or

(II) where more than one partner is a shareholder, those partners together are or were able,

directly or indirectly, whether with or without a connected person or connected persons (within the meaning of section 10 as it applies for the purposes of the Tax Acts), to control more than 15 per cent of the ordinary share capital of the company, or

(iii) is a partnership and the first-mentioned person is a company in which—

(I) a partner is or was able, or

(II) where more than one partner is a shareholder, those partners together are or were able,

directly or indirectly, whether with or without a connected person or connected persons (within the meaning of section 10 as it applies for the purposes of the Tax Acts), to control more than 15 per cent of the ordinary share capital of the company,

but this paragraph does not apply if the second-mentioned person concerned is a person to whom paragraphs (c) and (d) of subsection (1) refer.

(3) This section also applies to a person who satisfies the Revenue Commissioners that, in all the circumstances, the matter or matters referred to in subsection (1) or (2), which would otherwise cause such person not to be a person to whom this section applies, ought to be disregarded for the purposes of this section.

Standard rate subcontractor.

530H.— (1) Subject to subsection (2), this section applies to a person in relation to whom the Revenue Commissioners are satisfied that the person—

(a) is or is about to become a subcontractor engaged in the business of carrying out relevant operations,

(b) carries on or will carry on business from a fixed place established in a permanent building and has or will have such equipment, stock and other facilities as in the opinion of the Revenue Commissioners are required for the purposes of the business,

(c) properly and accurately keeps and will keep any business records to which section 886(2) refers and any other records normally kept in connection with such a business,

(d) has throughout the previous 3 years complied substantially with the obligations imposed by the Tax Acts, the Capital Gains Tax Acts and the Value-Added Tax Acts,

(e) in the case of a person who was resident outside the State at some time during the previous 3 years, has throughout that period complied with the obligations comparable to those mentioned in paragraph (c) and has throughout that period complied substantially with the obligations comparable to those mentioned in paragraph (d) imposed by the laws of the country in which that person was resident at any time during that period,

(f) has provided to the Revenue Commissioners whatever information is required by them to register the person for tax purposes, and

(g) is not a person to whom section 530G applies.

(2) For the purposes of subsection (1)(d), the Revenue Commissioners may make regulations identifying matters to be taken into account by them, including—

(a) the payment or remittance of taxes, interest and penalties,

(b) the delivery of returns,

(c) the supply, on request, of accounts or other information to a Revenue officer, and

(d) the extent to which any non-compliance is being addressed.

(3) This section does not apply to—

(a) a person engaged in the business of carrying out relevant contracts in partnership unless all persons in that partnership are persons to whom this section applies and unless the partnership business itself has complied with the obligations referred to in subsection (1) and the Revenue Commissioners are satisfied that it will continue to comply with those obligations, or

(b) a person if the Revenue Commissioners form an opinion that deductions from relevant payments at the standard rate of tax for the year of assessment will be insufficient to fully satisfy the income tax liability of the person for that year.

Determination of rates.

530I.— (1) For the purpose of establishing the rate of tax referred to in section 530E(1), the Revenue Commissioners shall, from time to time, determine whether a subcontractor is a person to whom section 530G applies, a person to whom section 530H applies or a person to whom neither section 530G nor 530H applies.

(2) Following a determination under subsection (1), the Revenue Commissioners shall notify the subcontractor of their determination.

(3) (a) On receipt of a notification under subsection (2), a subcontractor who is aggrieved by the determination of the Revenue Commissioners may, by notice in writing given to the Revenue Commissioners within 30 days of the date of the determination, appeal to the Appeal Commissioners.

(b) The Appeal Commissioners shall hear and determine an appeal made to them under this subsection as if it were an appeal against an assessment to income tax and the provisions of the Income Tax Acts relating to such appeals and to the rehearing of an appeal and to the statement of a case for the opinion of the High Court on a point of law shall apply accordingly with any necessary modifications.

(c) Pending the determination of an appeal under this section, the Revenue Commissioners may issue a deduction authorisation under this Chapter and—

(i) nothing in this subsection shall prejudice the validity of any such deduction authorisation issued, and

(ii) the principal concerned shall comply with the terms of any such deduction authorisation.

Register of principals.

530J.— (1) The Revenue Commissioners shall keep and maintain a register of principals for the purposes of this Chapter.

(2) Every principal to whom section 530B applies shall register as a principal with the Revenue Commissioners, unless he or she stands registered under section 531 immediately before the commencement of this section.

(3) The Revenue Commissioners shall make regulations for the purposes of this section and such regulations may provide for—

(a) keeping and maintaining the register,

(b) registration and time for registration,

(c) notification of change in relevant details,

(d) notification of cessation as a principal,

(e) cancellation of registration,

(f) the use of electronic means in connection with the registration process, and

(g) any other related matters.

Return by principal.

530K.— (1) On or before the due date relating to a return period, a principal shall make a return to the Collector-General of all relevant payments made by him or her during that return period and shall specify on that return the amount of his or her tax liability under this Chapter.

(2) (a) For the purposes of subsection (1), where the Revenue Commissioners issue, under section 530D(3), a deduction summary to a principal for a return period, the details on that summary shall, for all the purposes of the Tax Acts, be deemed to be a return made by the principal to the Collector-General of all relevant payments made by the principal during that return period and the amount of tax specified on that summary shall be deemed to be the amount specified by the principal of his or her tax liability under this Chapter.

(b) Paragraph (a) does not apply where the principal amends the details on the deduction summary in accordance with regulations made under this section and submits a return under subsection (1) in accordance with those amended details.

(3) Without prejudice to section 530F, the amount of tax specified in a return made or deemed to have been made under this section shall be due and payable by the principal concerned to the Revenue Commissioners.

(4) A return required under this section, including a return to which section 530M applies, shall be made by electronic means and the relevant provisions of Chapter 6 of Part 38 shall apply.

(5) The Revenue Commissioners shall make regulations for the purposes of this section and such regulations may provide for—

(a) the type of electronic means by which principals shall communicate with the Revenue Commissioners,

(b) the format of such communication,

(c) the circumstances in which and the means by which a principal may accept or reject data contained in the deduction summary for the purposes of submitting the return required by this section,

(d) the circumstances in which and the means by which a transaction may be carried forward into a deduction summary of the subsequent return period,

(e) the obligations of a principal in relation to a payment notified to the Revenue Commissioners under section 530C which the principal no longer intends to make,

(f) the circumstances in which and the means by which a principal is required to add transactions to the return, which are not reflected on the deduction summary, and

(g) any other related matters.

Payment of tax by principal.

530L.— (1) Tax due and payable in accordance with this Chapter shall be paid to the Collector-General not later than the due date relating to the return period concerned.

(2) Where tax is due and payable for a period covering more than one return period by virtue of section 530N, the due date relating to that tax shall be the due date relating to the earliest return period covered by the relevant assessment or return.

(3) A surcharge arising by virtue of section 530M shall be due and payable to the Revenue Commissioners and shall be payable at the same time as the amount of tax to which it relates is payable.

Late returns and amendments.

530M.— (1) Notwithstanding the requirements of section 530K(1), a principal may make or amend the return required by that section after the due date relating to that return.

(2) Without prejudice to section 530F, where a principal makes or amends a return in accordance with subsection (1), then—

(a) the amount of tax specified on that return shall be due and payable by that principal to the Revenue Commissioners, and

(b) that principal shall be subject to a surcharge of €100.

(3) The Revenue Commissioners shall serve notice on the principal of the total amount of tax and surcharge due and payable under this section for the return period or periods concerned.

(4) Where enforcement action for the recovery of tax specified in a return made or deemed made under section 530K has been taken, this section shall not apply until that action has been completed, unless the Revenue Commissioners otherwise direct.

(5) The Revenue Commissioners shall make regulations for the purposes of this section and such regulations may provide for—

(a) the type of electronic means by which principals shall communicate with the Revenue Commissioners,

(b) the format of such communication,

(c) the circumstances in which and the means by which a principal may, as appropriate, accept or reject data contained in the deduction summary for the purposes of submitting the return required by this section,

(d) the circumstances in which and the means by which a transaction may, as appropriate, be carried forward into a deduction summary of the subsequent return period,

(e) the obligations, as appropriate, of a principal in relation to a payment notified to the Revenue Commissioners under section 530C which the principal no longer intends to make,

(f) the circumstances in which and the means by which a principal is required to include transactions in a return,

(g) the format of returns which can be made in a case where a principal is appealing an assessment under section 530N, and

(h) any other related matters.

Assessment by Revenue officer.

530N.— (1) Where, in respect of a return period, a Revenue officer has reason to believe that a principal has not made a return under section 530K or 530M or that the amount of tax due and payable by a principal under this Chapter for a return period was greater than the amount of tax, if any, specified in a return made or deemed to have been made by that principal for that return period, then, without prejudice to any other action which may be taken, the officer may make an assessment in one sum of the total amount of tax which in his or her opinion is due and payable by the principal in respect of that return period.

(2) Without prejudice to section 530F, but subject to subsection (5), the amount of tax specified in an assessment under subsection (1) shall be due and payable to the Revenue Commissioners from the person so assessed.

(3) (a) A Revenue officer may, where he or she considers it necessary, amend an assessment of tax made under subsection (1).

(b) Without prejudice to anything in this Chapter, the provisions of sections 955, 956 and 1048 (including those relating to time limits) shall, with any necessary modifications, apply to the making and amending of an assessment under this section.

(4) (a) Where, in accordance with this section, the Revenue officer makes or amends an assessment, he or she shall give notice to the person assessed showing the total amount of tax due and payable in accordance with the assessment.

(b) Where the person assessed is a registered principal, the Revenue officer shall issue the notice of assessment or of amended assessment by electronic means.

(5) (a) Subject to paragraph (b), where notice is given to a person under subsection (4), the person may, if he or she claims that the total amount of tax assessed is excessive, on giving notice in writing to the Revenue officer within the period of 30 days from the date of the notice, appeal to the Appeal Commissioners.

(b) A person to whom notice is given under subsection (4), shall not be entitled to appeal to the Appeal Commissioners—

(i) in the case of a person who has made a return (including a deemed return) under section 530K or a return under section 530M, until that person has paid the tax and any surcharge due and payable on the basis of his or her return together with the related interest due under section 530Q, and

(ii) in any other case, until the person has made a return under section 530M for the return period concerned and has paid the tax and surcharge due and payable on the basis of that return together with the related interest due under section 530Q.

(c) The provisions of the Tax Acts relating to appeals shall, with any necessary modifications, apply to appeals against assessments made under this section as if those appeals were appeals against an assessment to income tax.

(d) On the determination of an appeal, the tax contained in an assessment or in an amended assessment shall, subject to section 530F, be due and payable by the person assessed to the Revenue Commissioners.

(6) A Revenue officer may make an assessment for a return period or for any number of consecutive return periods and an assessment may be issued before the end of the period to which it relates.

(7) (a) Subject to paragraph (b), where a Revenue officer makes an assessment for a number of consecutive return periods, the person to whom notice is given shall not be entitled to appeal to the Appeal Commissioners until such a time as the person—

(i) makes the return required in respect of each return period covered by the assessment, or

(ii) elects to make one return covering the full period assessed and makes that return,

and subsection (5) shall apply with any necessary modifications.

(b) Where paragraph (a)(ii) applies, a hearing of the Appeal Commissioners shall be in respect of the full period assessed.

(8) The Revenue Commissioners shall make regulations for the purposes of this section and such regulations may provide for—

(a) the issuing of notices of assessment or amended assessment including the means by which such notices shall be issued,

(b) the transmission of information in connection with appeals,

(c) the format and transmission of returns in connection with appeals,

(d) the procedures to apply to give effect to subsection (7), and

(e) any other related matters.

Computation of subcontractor’s profit.

530O.— In computing, for the purposes of Schedule D, the profits or gains arising or accruing to a subcontractor who receives a payment from which tax has been deducted in accordance with section 530F, the payment shall be treated as being of an amount equal to the aggregate of the net amount received after deduction of the tax and the amount of the tax deducted.

Credit for deducted tax.

530P.— (1) Where a principal deducts tax from a subcontractor in accordance with section 530F, the subcontractor shall be treated as having paid to the Revenue Commissioners, on the date of the deduction, an amount of income tax or corporation tax equal to the amount of the deduction.

(2) For the purposes of this Chapter, tax treated in accordance with subsection (1) shall be known as deducted tax.

(3) The Revenue Commissioners shall notify each subcontractor concerned of the amount of deducted tax, if any, which the subcontractor shall be treated as having paid under subsection (1).

(4) Subject to subsection (5), deducted tax shall be treated as a payment on account of income tax or corporation tax, as the case may be, for the chargeable period in which tax was deducted under section 530F.

(5) Notwithstanding subsection (4), deducted tax which is not required to cover an amount of preliminary tax (as defined in section 950) appropriate to a chargeable period, which is declared by the subcontractor to be due in respect of that period, shall be available for offset under section 960H, as if it were an overpayment for the purposes of that section.

(6) Where a Revenue officer makes an assessment to income tax or corporation tax on a subcontractor for a chargeable period or section 954(4) applies, deducted tax related to that period reduced by any amount offset or which is required to be offset under section 960H may, subject to section 865, be repaid to the subcontractor.

(7) No repayment of deducted tax shall be made, except in accordance with subsection (6).

Interest.

530Q.— Where an amount of tax or surcharge which a person is liable to pay under this Chapter to the Collector-General is not paid by the due date concerned, simple interest on the amount outstanding shall be paid by the person to the Collector-General and shall be calculated from the due date concerned until payment, for any day or part of a day during which the amount remains unpaid, at the rate of 0.0274 per cent.

Partnerships.

530R.— (1) As respects relevant contracts, where relevant operations are performed by a gang or group of persons (including persons in partnership), notwithstanding that any payment or part of a payment in respect of such relevant operations is made by the principal to one or more of the gang or group or to some other person, then, for the purposes of section 530P, such payment or part of a payment shall be deemed to have been made by the principal to the individual members of that gang or group in the proportions in which the payment or any amount in respect of the payment is to be divided amongst them.

(2) Except where the principal concerned makes a separate payment to each member of the gang or group, a person authorised by the gang or group, or in the case of a partnership, the precedent partner, shall, in respect of relevant payments, give to the Revenue Commissioners—

(a) the name, address and tax reference number of every person in the gang or group who is entitled to any part of the payment or any amount in respect of the payment, and

(b) the amount or proportion of the payment or the amount in respect of the payment to which each person, named by virtue of this provision, is entitled.

(3) The Revenue Commissioners shall make regulations for the purposes of this section and such regulations may provide for the manner in which the information referred to in subsection (2) is to be given and the steps to be taken by the Revenue Commissioners on receipt of such information.

(4) Without prejudice to the duties and obligations of partners in a partnership, in a case where the principal is a partnership, all things required to be done by the principal under this Chapter shall be done by the precedent partner within the meaning of Part 43.

Record keeping.

530S.— (1) Before giving a notification to the Revenue Commissioners under section 530C, a principal shall obtain from the subcontractor concerned an invoice setting out appropriate details of the work giving rise to the payment and bearing the subcontractor’s name, business address and tax reference number.

(2) Where a relevant contract is being performed by a gang or group of persons (including persons in partnership), the invoice required under subsection (1) shall bear the name, business address and tax reference number of the gang or group and the names of the individual members of the gang or group.

(3) Every subcontractor shall furnish to a principal, on request, all such information or particulars as are required by the principal to enable the principal to comply with this Chapter.

(4) (a) Without prejudice to other provisions of the Tax Acts, each subcontractor shall keep and maintain a record of all relevant payments received by him or her and the record shall state, in relation to each such payment, the date of the payment, the amount of the payment, the amount of tax, if any, deducted from the payment by the principal and the name of the person from whom the payment was received.

(b) Each subcontractor shall keep and maintain each copy of a deduction authorisation supplied by a principal under section 530F(4).

(5) Without prejudice to other provisions of the Tax Acts, the obligations contained in subsections (3) and (4) of section 886 to keep and retain records and linking documents apply to all records, documents or other data created or maintained manually or by any electronic means for the purposes of this Chapter.

(6) The Revenue Commissioners may make Regulations for the purposes of this section and such Regulations may provide for—

(a) the creation, keeping and retention of records by principals by electronic or other means, and

(b) the creation, keeping and retention of records by subcontractors by electronic or other means.

Inspection of records.

530T.— Without prejudice to other provisions of the Tax Acts, any person, or any employee of a person, who has made or received a relevant payment, shall produce to a Revenue officer for inspection all documents and records relating to the relevant payment as are in such person’s power, possession or procurement which have been requested by the Revenue officer.

Civil penalties.

530U.— (1) In proceedings for the recovery of a penalty under section 530F or the recovery of a penalty under section 1052, 1054 or 1077E in relation to matters arising under this Chapter—

(a) a certificate signed by a Revenue officer which certifies that he or she has inspected the relevant records of the Revenue Commissioners and that it appears from them that a deduction authorisation, deduction summary or other notice, statement or described document, was duly given to a stated person by stated means, including electronic means, on a stated day shall be evidence until the contrary is proved that that person received that deduction authorisation, deduction summary or other notice, statement or described document in the ordinary course,

(b) a certificate signed by a Revenue officer which certifies that he or she has inspected the relevant records of the Revenue Commissioners and that it appears from them that on a stated day or within a stated period, a stated person was a registered principal (within the meaning of section 530) shall be evidence until the contrary is proved that on a stated day or within a stated period, a stated person was a registered principal (within the meaning of section 530), and

(c) a certificate certifying as provided for in paragraph (a) or (b) of this subsection and purporting to be signed by a Revenue officer may be tendered in evidence without proof and shall be deemed until the contrary is proved to have been signed by such officer.

(2) Chapter 3A of Part 47 applies, with any necessary modifications, to a penalty arising under section 530F.

Miscellaneous.

530V.— (1) Regulations made under this Chapter shall be laid before Dáil Éireann as soon as may be after they are made and, if a resolution annulling those regulations is passed by Dáil Éireann within the next 21 days on which Dáil Éireann has sat after the regulations are laid before it, the regulations shall be annulled accordingly, but without prejudice to the validity of anything previously done under them.

(2) On the death of a principal, anything which the principal would have been liable to do under this Chapter shall be done by the personal representative of the principal.

(3) Anything to be done by the Revenue Commissioners under this Chapter may be done by any Revenue officer.

(4) (a) Notwithstanding the provisions of any other enactment, the provisions of this Chapter shall, subject to paragraphs (b) and (c) apply to a relevant payment made to a liquidator or a receiver.

(b) Where tax is deducted under this Chapter from a relevant payment made to a liquidator or receiver in respect of a relevant contract which is entered into by that liquidator or receiver after his or her appointment as such, the tax so deducted shall be treated as a payment on account of tax for the chargeable period concerned after the appointment of the liquidator or receiver.

(c) Where tax is deducted under this Chapter from a relevant payment made to a liquidator or receiver in respect of a relevant contract which was entered into prior to his or her appointment as such, the tax so deducted shall be treated as a payment on account of tax for the chargeable period prior to the appointment of the liquidator or receiver.”,

(l) in section 904(1), in the definition of “records” by substituting “Chapter 2 of Part 18 and regulations made under that Chapter” for “section 531 and regulations made under that section”,

(m) in section 960O(4)(a) by substituting “due and payable under Chapter 2 of Part 18 and regulations made under that Chapter” for “deducted under section 531(1)” in subparagraph (ii) and by deleting subparagraph (iii),

(n) in section 960P(3) by substituting “due and payable under Chapter 2 of Part 18 and regulations made under that Chapter” for “deducted under section 531(1)” in paragraph (c) and by deleting paragraph (d),

(o) in section 980(8A) by inserting the following after paragraph (b)—

“(c) For the purpose of this section, a notification issued, within the previous 12 months, by the Revenue Commissioners under section 530I that the named person is a person to whom section 530G applies shall be treated as a certificate for the purposes of this subsection.”,

(p) in section 1077E(1) in the definition of “period”, by inserting “or a return period, as defined in section 530” after “accounting period”,

(q) in section 1078(2)(ii)(i), by substituting “Chapter 2 of Part 18” for “section 531(1)”,

(r) in section 1078(2)(ii)(ii), by substituting “Chapter 2 of Part 18” for “section 531(3A)”,

(s) in section 1078(9), by substituting “Sections 530U, 987(4) and 1052(4)” for “Sections 987(4) and 1052(4)”,

(t) in section 1089(1) by substituting “section 530Q, 531(9) or 991” for “section 531(9) or 991”, and

(u) in Schedule 29 by substituting “Chapter 2 of Part 18 and regulations made under that Chapter” for “section 531 and Regulations under that section” in each place where it occurs.

(2) The Principal Act is amended in section 531 by inserting the following after subsection (5A)—

“(5B) Where a claim to repayment, under regulations made in accordance with paragraph (b) or (c) of subsection (5), is based on tax deducted from a payment made to a subcontractor under subsection (1), the date of payment of that tax shall be deemed to be the date on which the certificate of deduction issued by a principal under regulation 6 of the Income Tax (Relevant Contracts) Regulations 2000 in respect of such tax is submitted to the Revenue Commissioners and the provisions of the Tax Acts shall apply accordingly.”.

(3) Section 16 (3)(b) of the Value-Added Tax Consolidation Act 2010 is amended—

(a) by substituting “section 530A” for “section 531(1)”, and

(b) by substituting “section 530A(1)(b)” for “section 531(1)(b)”.

(4) (a) This section, with the exception of subsection (2), comes into operation on such day as the Minister for Finance may by order appoint.

(b) Section 531 of the Principal Act and regulations made under that section shall not apply as regards payments made on or after the day referred to in paragraph (a) under a relevant contract, as defined in section 530 of that Act.