Tax Briefing articles which refer to RCT in the Construction Sector (1996 – 2004)
- Specific Queries
- Forms RCT 47 (Relevant Payments Cards)
- Principal Contractors
- Subcontractors
- Interest, Penalties & Court Proceedings
- Legislation changes
- Integration of RCT with Revenue’s mainstream computer systems
Specific Queries
Are persons who become involved in land development without taking any active part in the actual erection of buildings required to operate Relevant Contracts Tax under Section 17(2) Finance Act 1970? Land development
How are payments to subcontractors by principal contractors prior to receipt of a relevant payments card (RCT 47) to be treated for tax purposes?
Payments card (MS Word, 20 KB)
Forms RCT 47 (Relevant Payments Cards)
How are payments to subcontractors by principal contractors prior to receipt of a relevant payments card (RCT 47) to be treated for tax purposes? Payments card (MS Word, 20 KB)
Introduction of the "nominated bank account" procedure.
FA 99 (MS Word, 31 KB)
Introduction of Form 46A procedure where contracts are ongoing at the end of the year.FA 99 (MS Word, 31 KB)
Principal Contractors
Brief note on new principal contractor registration procedures introduced in Finance Act 2004.
FA 04 (MS Word, 20 KB)
More detailed note on new principal contractor registration procedures introduced in Finance Act 2004.
Principal Contractors (MS Word, 24 KB).
Are persons who become involved in land development without taking any active part in the actual erection of buildings required to operate Relevant Contracts Tax under Section 17(2) Finance Act 1970?
Land development
Employment agencies who arrange for the provision of labour under a relevant contract.
FA 99 (MS Word, 31 KB)
Finance Act 1999 changed the statutory basis of collection and recovery of RCT from an annual basis to a monthly basis with effect from 6 April 1999.
The Revenue Commissioners are also empowered to raise estimates where the return is not submitted.
RCT30 (MS Word, 20 KB) and also FA 99 (MS Word, 21 KB).
RCT 1
Form RCT 1 is a joint declaration by a principal and a subcontractor that the contract they are entering into is not a contract of employment.
FA 96 (MS Word, 38 KB)
This note outlines what happens in cases of a continuing contractual relationship (rolling contract). It should be noted that the information provided in Revenue eBrief No. 41/2008 supersedes the position set out in the attached Tax Briefing article (Issue 26 – April 1997).
RCT 1 (MS Word, 26 KB)
Subcontractors
Forms RCTDC & Repayments
Introduction of a new 8 digit RCTDC/C45 security number with effect from 1 February 2004.
New 8 digit code.
Authorises Revenue to offset RCTDC credit against PRSI, Health Levies, Employment & Training Levies
FA 97 (MS Word, 21 KB)
RCT 1
Form RCT 1 is a joint declaration by a principal and a subcontractor that the contract they are entering into is not a contract of employment.
FA 96 (MS Word, 38 KB)
This note outlines what happens in cases of a continuing contractual relationship (rolling contract). It should be noted that the information provided in Revenue eBrief No. 41/2008 supersedes the position set out in the attached Tax Briefing article (Issue 26 – April 1997).
RCT 1 (MS Word, 26 KB)
"Qualifying period" for C2 applicants
- Extension of the "qualifying period" for C2 applications
- Extension of the "qualifying period" requirement to non-resident C2 applicants
C2 Renewals
Revenue may renew a certificate of authorisation (C2) for a subcontractor without the need for that person to make a further application to them, subject to them being satisfied in relation to standard compliance requirements.
FA 04 (MS Word, 20 KB)
Appeals
Right of appeal against the cancellation of a C2
FA 99 (MS Word, 31 KB)
Interest, Penalties & Court Proceedings
Statutory interest charges apply
FA 99 (MS Word, 31 KB)
Extends the time for taking summary proceedings
FA 97 (MS Word, 21 KB)
Extends the scope of civil penalties to the non-operation of RCT
FA 97 (MS Word, 21 KB)
Legislation changes
Finance Act 2004 (Section 20) introduced the following changes
- Allows the Revenue Commissioners, by way of regulations, to set up and maintain a register of principal contractors and to require all new principal contractors to formally register with them.
- confirms that the Revenue Commissioners may renew a C2 to a subcontractor without the need for that person to make a fresh application.
The Income Tax (Relevant Contracts Tax) Regulations 2000 (S.I. No. 71 of 2000), are effective from 6 April 2000. This note gives an overview of the changes.
New Regulations (MS Word, 26 KB)
Finance Act 1999 (Section 18) introduced changes in the following areas:
- Extension of the "qualifying period" for C2 applications
- Extension of the "qualifying period" requirement to non-resident C2 applicants
- Employment agencies who arrange for the provision of labour under a relevant contract
- Obligation to submit Form RCT 30 on a monthly basis
- Provision to enable Revenue raise monthly estimates
- Statutory interest charges apply
- Introduction of the "nominated bank account" procedure
- Introduction of Form 46A procedure where contracts are ongoing at the end of the year
- Right of appeal against the cancellation of a C2
Finance Act 1997 introduced the following changes:
- Authorises Revenue to offset RCTDC credit against PRSI, Health Levies, Employment & Training Levies
- Extends the time for taking summary proceedings
- Extends the scope of civil penalties to the non-operation of RCT
Finance Act 1996 introduced the following changes:
- Introduced new arrangements on the payments to "gangs"
- Introduced the requirement that a principal and subcontractor complete a Form RCT1 before entering into a relevant contract
- Introduced a requirement that a subcontractor’s PPS Number/date of birth be quoted on documentation
Integration of RCT with Revenue’s mainstream computer systems
Relevant Contracts Tax (RCT) was incorporated into Revenue’s mainstream computer system (ITP) on a phased basis from December 2002. ITP forms part of Revenue’s significant investment in improving our computer systems and details of the project were set out in Tax Briefing, Issue 35 (March 1999). This change brings benefits for customers and agents and also enhances Revenue’s processing capacity.
ITP (MS Word, 37 KB)
