531 Payments to subcontractors in certain industries.

[FA70 s17(2) to (12) and (14) to (17); FA76 s21; FA78 s46; FA81 s7; FA90 s131; FA92 s28(b) to (h); FA95 s18(1)(b) and (c); FA96 s41(b), (c) and (d); FA97 s13(1)(b) and (c)]

(1) Subject to this section, where in the performance of a relevant contract in the case of which the principal is—

(a) a person who, in respect of the whole or any part of the relevant operations to which the contract relates, is the contractor under another relevant contract,

(b) a person—

(i) carrying on a business which includes the erection of buildings or^[40]>the development of land (within the meaning of section 639(1)) or^<[40] the manufacture, treatment or extraction of materials for use, whether used or not, in construction operations,

^[1]>

(ii) carrying on a business of meat processing operations in an establishment approved and inspected in accordance with the European Communities (Fresh Meat) Regulations, 1987 (S.I. No. 284 of 1987), or

^<[1]

^[1]>

(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

^<[1]

(iii) carrying on a business which 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) or section 19 or 45 of that Act,

(e) a Minister of the Government,

(f) any board established by or under statute^[41]>or any board or body established by or under royal charter and funded wholly or mainly out of moneys provided by the Oireachtas^<[41], or

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

the principal makes a payment, or as respects relevant contracts entered into on or after the 15th day of May, 1996, is deemed to make a payment pursuant to subsection (3), to another person (whether the contractor or not and in this section referred to as “the subcontractor”), the principal shall deduct from the payment and pay to the Collector-General tax at the rate of 35 per cent of the amount of such payment.

(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^[42]>or develops land^<[42] for the use or occupation of such person or employees of such person.

^[49]>

(2A) (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.

^<[49]

(3) As respects relevant contracts entered into on or after the 15th day of May, 1996, where relevant operations are performed by a gang or group of persons, including a partnership in respect of which the principal has not received a relevant payments card, and 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 this section and any regulations made under this section, 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.

^[3]>

^[55]>

(3A) (a) ^[16]>Within 9 days from the end of an income tax month^<[16][16]>Not later than the 14th day of an income tax month^<[16], a principal or any person who was previously a principal and who has been required to do so by notice in writing from the Revenue Commissioners, shall—

(i) make a return to the Collector-General, on the prescribed form, of the amount, if any, of tax which that person was liable under this section to deduct from payments made to uncertified sub-contractors during ^[16]>that income tax month^<[16][16]>the previous income tax month^<[16], and

(ii) remit to the Collector the amount of the tax, if any, which the person was so liable to deduct.

^<[55]

^[55]>

(3A) (a) Not later than 14 days after the end of a return period, a principal or any person who was previously a principal and who has been required to do so by notice in writing from the Revenue Commissioners, shall—

(i) make a return to the Collector-General, on the prescribed form, of the amount, if any, of tax which that person was liable under this section to deduct from payments made to uncertified subcontractors during that return period, and

(ii) remit to the Collector-General the amount of the tax, if any, which the person was so liable to deduct.

^<[55]

(b) The Collector-General shall furnish the person concerned with a receipt in respect of the payment; such a receipt shall consist of whichever of the following the Collector-General considers appropriate, namely—

(i) a separate receipt on the prescribed form in respect of each such payment, or

(ii) a receipt on the prescribed form in respect of all such payments that have been made within a period specified in the receipt.

^<[3]

^[56]>

(c) The Revenue Commissioners may make regulations with respect to the provision to them, by a principal or other person as is referred to in paragraph (a), of such information as may be specified in the regulations in relation to the constituent elements of the amount (if any) referred to in paragraph (a)(i).

^<[56]

^[52]>

(3AA) Where a return and remittance referred to, respectively, in subparagraphs (a)(i) and (a)(ii) of subsection (3A) are—

(a) as respects the return, made by electronic means and in accordance with Chapter 62 of Part 38, and

(b) as respects the remittance, made by such electronic means (within the meaning of section 917EA) as are required by the Revenue Commissioners,

^[57]>then subsection (3A) shall apply and have effect as if “the 23rd day of an income tax month” were substituted for “the 14th day of an income tax month”^<[57][57]>then subsection (3A) shall apply and have effect as if “23 days” were substituted for “14 days”^<[57]; but where that return or remittance is made after the day provided for in this subsection the Income Tax Acts shall apply and have effect without regard to the provisions of this subsection.

^<[52]

^[26]>

(3B) (a) Subject to paragraph (b), where a principal or any person who was previously a principal makes a remittance of tax in respect of a year of assessment or a period comprised in a year of assessment and details of the remittance are not included in a return required to be made under subsection (3A), the amount comprised in the remittance shall be deemed to be a remittance in respect of the first income tax month of the year of assessment.

(b) Where, within 1 month of interest being demanded of a person by the Collector-General under subsection (9) by virtue of the application of paragraph (a), the person makes a return to the Collector-General under subsection (3A) for ^[58]>the income tax month or months^<[58][58]>return period or periods^<[58] to which the remittance of tax relates and of the amount comprised in the remittance for each of ^[59]>those income tax months^<[59][59]>those return periods^<[59], paragraph (a) shall be deemed not to have applied and the remittance shall be treated for the purposes of this section as a remittance or, as the case may be, remittances of tax for the respective ^[58]>income tax month or months^<[58][58]>return period or periods^<[58].

^<[26]

(4) 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 subsection (1), 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.

(5) In so far as a subcontractor is chargeable to tax in respect of any profits or gains arising or accruing to the subcontractor from a trade or vocation, the subcontractor shall be treated as having paid on account of tax so chargeable any tax which was deducted from payments taken into account in the computation of those profits or gains and which has not been repaid or for which a set-off has not been made, and the Revenue Commissioners shall make regulations for giving effect to this subsection and those regulations shall, in particular, include provision—

(a) as to the manner in which, and the periods for which, tax deducted under this section is to be taken into account as a sum paid on account of the liability to tax of a sub-contractor,

(b) for repayment, on due claim made for a period (in this paragraph referred to as “the repayment period”) ^[17]>commencing on the 6th day of April in a year of assessment and ending on the 5th day of the month following the date of the payment or, if the payment was made on or before the 5th day of a month, ending on the 5th day of that month^<[17][17]>commencing on the 1st day of a year of assessment and ending on the last day of the income tax month in which the payment was made^<[17], of such portion of the tax deducted from payments received by a subcontractor during the repayment period (reduced by any amount of such tax repaid or set off) as appears to the Revenue Commissioners to exceed the proportionate part of the amount of tax for which the subcontractor is liable or is estimated to be liable for that year of assessment, and

(c) for repayment in cases where the total of the tax deducted from payments received by a subcontractor and not repaid to the subcontractor exceeds the aggregate of—

(i) the amount of tax for which the subcontractor is liable, and

(ii) any amount which the subcontractor is liable to remit—

(I) under the Value-Added Tax Consolidation Act 2010,

(II) under the Capital Gains Tax Acts,

(III) under Chapter 4 of Part 42, and

(IV) in respect of—

(A) employment contributions and self-employment contributions under the Social Welfare Acts,

(B) health contributions under the Health Contributions Act, 1979, and

(C) Employment and Training Levy under the Youth Employment Agency Act, 1981, as amended by the Labour Services Act, 1987.

^[30]>

(5A) A claim to repayment under regulations made in accordance with paragraph (b) or (c) of subsection (5) shall not be allowed at a time at which a claim to repayment in respect of the chargeable period (within the meaning of section 321), within which the period for which the claim to repayment relates falls, would not be allowed under section 865(4).

^<[30]

^[65]>

(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.

^<[65]

(6) The Revenue Commissioners shall make regulations with respect to the ^[4]>assessment (including estimated assessment), charge, collection and recovery of tax deductible under subsection (1)^<[4][4]>assessment (including estimated assessment), estimation, charge, collection and recovery of tax deductible under subsection (1)^<[4] and the regulations may, in relation to such tax, include any matters which might be included in regulations under section 986 in relation to tax deductible under Chapter 4 of Part 42 and, without prejudice to the generality of the foregoing, regulations under this subsection may include provision for—

(a) (i) the issue for ^[60]>a year of assessment^<[60][60]>a period covering not more than 2 years of assessment^<[60], or, in relation to such class or classes of subcontractor as may be specified in the regulations, for such longer period as may be so specified, of certificates of authorisation,

(ii) the refusal to issue, appeal against refusal to issue, recall or cancellation of certificates of authorisation and the surrender of such certificates, and

(iii) the production of documents or other material, including a photograph of the subcontractor or, in a case where the subcontractor is not an individual, a photograph of the individual by whom the certificate of authorisation will be produced in accordance with subsection (12)(a), in support of an application for a certificate of authorisation;

(b) (i) the making, before the entering into of a relevant contract, by the persons who intend to enter into such a contract ^[50]>(other than where one of such persons comes within a class or classes of persons as may be specified in the regulations)^<[50] of a declaration, in a specified form, to the effect that, having regard to guidelines published by the Revenue Commissioners for the information of such persons as to the distinctions between contracts of employment and relevant contracts and without prejudice to the question of whether a particular contract is a contract of employment or a relevant contract, they have satisfied themselves that in their opinion the contract which they propose to enter into is not a contract of employment,

(ii) the publication of guidelines by the Revenue Commissioners for the purposes of subparagraph (i), ^[43]>and^<[43]

(iii) the keeping by principals of every such declaration and the inspection of any or all such ^[44]>declarations;^<[44][44]>declarations, and^<[44]

^[45]>

(iv) the delivery by principals of any or all such declarations to the Revenue Commissioners;

^<[45]

^[23]>

(ba) (i) the setting up by the Revenue Commissioners and the maintenance by them of a register containing details of every person who is a principal within the meaning of section 530(1), and

(ii) requiring every such person as is specified in the regulations, to notify the Revenue Commissioners within the period and in such manner as is provided for in the said regulations, that that person is a principal for the purposes of this Chapter;

^<[23]

(c) the keeping by principals of—

(i) such records as may be specified in the regulations,

(ii) relevant payments cards and the entry on those cards of such particulars as may be specified in the regulations,

(iii) cards (in this Chapter referred to as “relevant tax deduction cards”) in such form as may be prescribed by the regulations and containing particulars of any deductions under subsection (1) and the entry on those cards of such other particulars as may be specified in the regulations;

(d) the making to the Revenue Commissioners of such returns relating to the payments made by principals as may be specified in the regulations and the inspection of the records referred to in paragraph (c) (including the cards referred to in that paragraph);

(e) the keeping by subcontractors of such records as may be specified in the regulations containing particulars of payments received by them, and the inspection of such records;

(f) the completion by principals of certificates of tax deducted (in this Chapter referred to as “certificates of deduction”) from payments made to subcontractors and, as respects relevant contracts entered into on or after the 15th day of May, 1996, the entry on certificates of deduction of such particulars as may be specified in the regulations;

(g) the furnishing by subcontractors to principals of all such information or particulars as are required by principals to enable principals to comply with any provision of regulations made under this section;

(h) the sending to subcontractors, in cases where tax was deducted under subsection (1) from payments made to them, of statements containing particulars of their liability (if any) to tax for a year of assessment.

(7) Every regulation made under this section shall be laid before Dáil Éireann as soon as may be after it is made and, if a resolution annulling the regulation is passed by Dáil Éireann within the next 21 days on which Dáil Éireann has sat after the regulation is laid before it, the regulation shall be annulled accordingly, but without prejudice to the validity of anything previously done thereunder.

(8) The provisions of every enactment and of ^[19]>the Income Tax (Construction Contracts) Regulations, 1971 (S.I. No. 1 of 1971),^<[19][19]>the Income Tax (Relevant Contracts) Regulations 2000 (S.I. No. 71 of 2000)^<[19] which apply to the recovery of any amount of tax which a principal of the kind referred to in subsection (1) is liable under this section and those Regulations to pay to the Collector-General shall apply to the recovery of any amount of interest payable on that tax as if that amount of interest were a part of that tax.

^[54]>

(9) Where an amount of tax which a person who is or is deemed to be a principal of the kind referred to in subsection (1) is liable under this section and any regulations under subsection (6) to pay to the Collector-General is not so paid, simple interest on the amount shall be paid by the person to the Collector-General and shall be calculated from the date on which the amount became due for payment at a rate of ^[2]>1.25 per cent^{<[2][15]>[2]>}1 per cent^<[2] for each month or part of a month during^<[15][15]>0.0322 per cent for each day or part of a day on^<[15] which the amount remains unpaid.

^<[54]

^[54]>

(9) Where the amount of tax which a person who is or is deemed to be a principal of the kind referred to in subsection (1) is liable under this section and any regulations under subsection (6) to pay to the Collector-General is not so paid, simple interest on the amount shall be paid by the person to the Collector-General and shall be calculated from the date on which the amount became due and payable until payment—

(a) for any day or part of a day before 1 August 1978 during which the amount remains unpaid, at a rate of 0.0492 per cent,

(b) for any day or part of a day on or after 1 August 1978 and before 1 April 1998 during which the amount remains unpaid, at a rate of 0.0410 per cent,

(c) for any day or part of a day on or after 1 April 1998 and before 1 July 2009 during which the amount remains unpaid, at a rate of 0.0322 per cent, and

(d) for any day or part of a day on or after 1 July 2009 during which the amount remains unpaid, at a rate of 0.0274 per cent.

^<[54]

^[5]>

(10) Subsection (9) shall apply to tax recoverable from a person by virtue of a notice under Regulation 12(1) of ^[20]>the Income Tax (Construction Contracts) Regulations, 1971 (S.I. No. 1 of 1971),^<[20][20]>the Income Tax (Relevant Contracts) Regulations 2000^<[20] as if the tax were tax which the person was liable under those Regulations to remit for the last income tax month (within the meaning of those Regulations) of the year, or, as appropriate, of the months ending in the accounting period, to which the notice relates.

^<[5]

^[5]>

(10) Subsection (9) shall apply to tax recoverable from a person by virtue of a notice issued under the Income Tax (Construction Contracts) Regulations, 1971 (S.I. No. 1 of 1971), as if the tax were tax which the person was liable under subsection (3A) to remit—

(i) where the notice relates to ^[66]>an^<[66][66]>a^{<[66] [61]>}income tax month or months^<[61][61]>return period or periods^<[61], for the respective ^[61]>income tax month or months^<[61][61]>return period or periods^<[61] referred to in the notice, and

^[27]>

(ii) where the notice relates to a year, the last income tax month of the year to which the notice relates.

^<[27]

^[27]>

(ii) where the notice relates to a year of assessment, for the first income tax month in the year of assessment to which the notice relates, but where the inspector determines, or, on appeal against the notice, the Appeal Commissioners determine, the amount of tax which the person was liable to remit, but had not remitted, for ^[62]>each income tax month^<[62][62]>each return period^<[62] comprised in the year of assessment, interest shall be calculated and payable in respect of each amount so determined in accordance with subsection (9) as if that amount were included in a notice in respect of ^[63]>the income tax month^<[63][63]>the return period^<[63] in question.

^<[27]

^<[5]

(11) (a) ^[32]>The Revenue Commissioners shall^<[32][32]>Subject to subsection (11A), the Revenue Commissioners shall^<[32], on application to them in that behalf by a person, issue to the person a certificate (in this section referred to as a “certificate of authorisation”) if they are satisfied—

(i) that the person is or is about to become a subcontractor engaged in the business of carrying out relevant contracts,

(ii) that the business is or will be carried on from a fixed place of business 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,

(iii) that in connection with the business records to which section 886(2) refers are being or will be kept, and any other records normally kept in connection with such a business are being or will be kept properly and accurately,

(iv) that—

(I) the person, any partnership in which the person is or was a partner and any company (within the meaning of the Companies Act, 1963) of which the person is or was a proprietary director or proprietary employee,

(II) in a case where the person is a partnership, each partner, and

(III) in a case where the person is a company, 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,

has throughout the qualifying period complied with all the obligations imposed by the Tax Acts, the Capital Gains Tax Acts or the Value-Added Tax Consolidation Act 2010, in relation to—

(A) the payment or remittance of the ^[21]>taxes^<[21][21]>taxes, interest and penalties^<[21] required to be paid or remitted under those Acts,

(B) the delivery of returns, and

(C) requests to supply to an inspector accounts of, or other information about, any business carried on,

by that individual, partnership or company, as the case may be, ^[6]>and^<[6]

^[33]>

(v) that there is good reason to expect that that person, partnership or company will comply with the obligations referred to in subparagraph (iii) in relation to periods ending after the date of termination of the ^[7]>qualifying period.^<[7][7]>qualifying period, and^<[7]

^<[33]

^[33]>

(v) that there is good reason to expect that that person, partnership or company will comply with the obligations referred to in subparagraphs (iii) and (iv) in relation to periods ending after the date of termination of the qualifying period, and

^<[33]

^[8]>

(vi) in the case of a person who was resident outside the State at some time during the qualifying period, that the person has throughout the qualifying period complied with all the obligations comparable to those mentioned in subparagraph (iv) imposed by the laws of the country in which that person was resident at any time during the qualifying period.

^<[8]

(b) ^[34]>A person in respect of whom the Revenue Commissioners are not satisfied in relation to any one or more of the matters specified in ^[22]>subparagraphs (i) to (iv)^<[22][22]>subparagraphs (i) to (iv) and (vi)^<[22] of paragraph (a)^<[34][34]>A person referred to in paragraph (a) in respect of whom the Revenue Commissioners are not satisfied in relation to the matters specified in subparagraph (i) to (iv) and (vi) of that paragraph^<[34] shall nevertheless, for the purposes of the issue of a certificate of authorisation, be treated as a person in respect of whom they are so satisfied if the Revenue Commissioners are of the opinion that in all the circumstances such person’s failure to satisfy them in relation to such matter or matters ought to be disregarded for those purposes.

^[24]>

(ba) Notwithstanding paragraph (a), where the Revenue Commissioners have issued a certificate of authorisation to a person under the provisions of that paragraph or paragraph (b), the Revenue Commissioners may issue a further certificate of authorisation to that person without a requirement that the person make a further application to them in that behalf, where they are satisfied, in respect of that person, in relation to the matters specified in subparagraphs (i) to (vi) of paragraph (a), or, as the case may be, where the provisions of paragraph (b) apply.

^<[24]

(c) A certificate of authorisation issued under this subsection shall be valid for such period as the Revenue Commissioners may provide by regulations made pursuant to subsection (6).

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(11A) Where a person applies for a certificate of authorisation in accordance with subsection (11) (in this subsection referred to as the “first-mentioned person”) and 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—

(a) 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,

(b) is a company and the first-mentioned person is 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

(c) the second-mentioned person 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,

then, a certificate of authorisation shall not be issued under subsection (11) to the first-mentioned person unless the second-mentioned person is in compliance with the obligations imposed on that person by the Tax Acts, the Capital Gains Tax Acts and the Value-Added Tax Consolidation Act 2010 in relation to the matters specified in paragraphs (a)(iii) and (iv) of subsection (11).

^<[35]

^[9]>

(12) (a) Where a subcontractor to whom a certificate of authorisation has been issued produces it to a principal, the principal shall apply to the Revenue Commissioners for a card (in this Chapter referred to as a “relevant payments card”) in respect of the subcontractor.

(b) Where on such application the Revenue Commissioners are satisfied that a relevant payments card in respect of the subcontractor ought to be issued to the principal, they shall issue such a card to the principal who on receiving the card shall, subject to subsection (13), be entitled during the income tax year (or the unexpired portion of the income tax year) to which the relevant payments card relates to make payments without deduction of tax to the subcontractor named in the card.

^<[9]

^[9]>

(12) (a) Where a subcontractor to whom a certificate of authorisation has been issued produces it to a principal, the principal shall apply to the Revenue Commissioners for a card (in this Chapter referred to as a “relevant payments card”) in respect of the subcontractor.

(b) Notwithstanding paragraph (a), where—

(i) a subcontractor has notified the Revenue Commissioners of details of the bank account, held in the State in the name of the subcontractor or in the case of a subcontractor who is not resident in the State, held either in the State or in the State in which the subcontractor is resident, into which payments in respect of relevant contracts are to be made (hereafter in this subsection referred to as “the nominated bank account”), and

(ii) the principal undertakes to make all payments to the subcontractor in question directly to the nominated bank account,

the principal may apply to the Revenue Commissioners for a relevant payments card where the subcontractor has provided details of the certificate of authorisation to the principal together with details of the nominated bank account into which payments are to be made by the principal.

^[28]>

(c) Notwithstanding paragraphs (a) and (b), a principal may apply for a relevant payments card in respect of a subcontractor even though the subcontractor has not produced or provided details of a certificate of authorisation for the year to which the relevant payments card relates, where—

(i) the principal has been issued with a relevant payments card in relation to that subcontractor for the immediately preceding year, and

(ii) the relevant contract between the principal and the subcontractor in relation to which the relevant payments card is required is ongoing at the end of that year.

^<[28]

^[28]>

(c) Notwithstanding paragraphs (a) and (b), a principal may apply for a relevant payments card in respect of a subcontractor for a year of assessment where—

(i) the principal has been issued with a relevant payments card in respect of the subcontractor for the immediately preceding year of assessment,

(ii) the relevant contract between the principal and the subcontractor in relation to which the relevant payments card is required is likely to be ongoing at the end of that preceding year, and

(iii) the principal has obtained from the subcontractor details of the subcontractor’s certificate of authorisation for the year of assessment to which the application for the relevant payments card relates.

^<[28]

^[36]>

(d) Where on ^[29]>such application^<[29][29]>the making of an application under paragraph (a), (b) or (c)^<[29] the Revenue Commissioners are satisfied that a relevant payments card in respect of the subcontractor ought to be issued to the principal, they shall issue such a card to the principal who, on receiving the card shall, subject to subsection (13), be entitled during the ^[18]>income tax year^<[18][18]>year of assessment^<[18] (or the unexpired portion of the ^[18]>income tax year^<[18][18]>year of assessment^<[18]) to which the relevant payments card relates to make payment without deduction of tax to the subcontractor named on the card but, in the case of an application to which paragraph (b) applies or an application to which paragraph (c) applies where the relevant payments card mentioned in subparagraph (i) of that paragraph was issued following an application made under and in accordance with paragraph (b), any such payments shall be made by the principal directly to the nominated bank account.

^<[36]

^<[9]

^[36]>

(d) Subject to the following provisions of this subsection and to subsection (13), where, on the making to them by a principal of an application under paragraph (a), (b) or (c), the Revenue Commissioners are satisfied that a relevant payments card in respect of the subcontractor concerned ought to be issued, they shall issue such a card to the principal who, on receiving the card, shall, during the year of assessment (or the unexpired portion of the year of assessment) to which the relevant payments card relates, be entitled, subject to any limit imposed on the card in accordance with paragraph (e), to make payment, without deduction of tax, to the subcontractor named on the card but, in the case of an application to which paragraph (b) applies, or an application to which paragraph (c) applies where the relevant payments card mentioned in subparagraph (i) of that paragraph was issued following an application made under and in accordance with paragraph (b), any such payments shall be made by the principal directly to the nominated bank account.

(e) Where it appears requisite to them to do so for the protection of the revenue, the Revenue Commissioners may, by specifying the amount thereof on a relevant payments card, impose a limit (in this section referred to as the “specified limit”) on the amount of the payments that a principal may make, without deduction of tax, to the subcontractor named on the card.

^[64]>

(f) Where a specified limit has been applied by them for a year of assessment in relation to a relevant payments card by virtue of paragraph (e), the Revenue Commissioners, at the request of the subcontractor named on the card, shall, as may be appropriate, amend the limit by reducing or, if they consider it appropriate to do so in the circumstances, increasing or removing it.

^<[64]

^[64]>

(f) Where a specified limit has been applied by them for a year of assessment in relation to a relevant payments card by virtue of paragraph (e), the Revenue Commissioners, either at the request of the subcontractor named on the card or otherwise, may, as they consider it appropriate, amend the limit by reducing, increasing or removing it.

^<[64]

(g) Where, in accordance with paragraph (f), the Revenue Commissioners amend a specified limit applied to a relevant payments card, they shall issue to the principal, and the principal shall thereafter use, a new relevant payments card.

(h) Where a specified limit is applied to a relevant payments card, the subcontractor named on the card shall, at the same time as the card is issued to the principal, be notified in writing by the Revenue Commissioners of the application of the limit and the amount, or revised amount, thereof, as the case may be.

(i) Where, in a year of assessment, the aggregate of the amount of the payments made by a principal to a subcontractor exceeds the specified limit, if any, imposed on the relevant payments card, or the amended relevant payments card, as the case may be, issued in respect of that subcontractor, the principal shall deduct from such excess, and pay to the Collector-General, tax in accordance with subsection (1).

^<[36]

(13) (a) Where it appears to the Revenue Commissioners that—

(i) a certificate of authorisation was issued on the basis of false or misleading information,

(ii) a certificate of authorisation would not have been issued if information obtained subsequent to its issue had been available at the date of its issue,

(iii) a person to whom a certificate of authorisation was issued has permitted it to be misused,

(iv) in the case of a certificate issued to a company, there has been a change in control (within the meaning of section 432) of the company,

(v) a person to whom a certificate of authorisation was issued has failed to comply with any of the obligations imposed on such person by the Tax Acts, the Capital Gains Tax Acts, the Value-Added Tax Consolidation Act 2010, or by any regulations made thereunder in relation to—

(I) the payment or remittance of the taxes required to be paid or remitted under any of those Acts,

(II) the delivery of returns, and

(III) requests to supply to an inspector accounts of, or other information about, any business carried on by such person,

or

(vi) the business of carrying out relevant contracts in relation to which the certificate of authorisation was issued has ceased to be carried on by the person to whom the certificate was issued,

the Revenue Commissioners may at any time cancel the certificate and give notice in writing to that effect to any principal.

(b) Where a principal receives a notice under paragraph (a), the principal shall—

(i) deduct tax in accordance with subsection (1) from any payments made to the person to whom the notice relates on or after the date of receipt of the notice, and

(ii) return to the Revenue Commissioners any relevant payments cards issued to the principal in relation to that person and any relevant tax deduction card kept by the principal in relation to that person.

(c) The Revenue Commissioners shall advise a person in relation to whom a notice under paragraph (a) was issued of the issue of such notice and shall require such person to return to them forthwith the certificate of authorisation issued to such person.

(14) (a) Where any person—

(i) for the purpose of obtaining a certificate of authorisation or a relevant payments card makes any false statement or furnishes any document which is false in a material particular,

(ii) disposes of a certificate of authorisation otherwise than by the return of the certificate to the Revenue Commissioners,

(iii) fails to return a certificate of authorisation to the Revenue Commissioners when required to do so in accordance with subsection (13)(c),

(iv) is in possession of a certificate of authorisation that was not issued to such person by the Revenue Commissioners, or

(v) produces to a principal a certificate of authorisation after such person has been advised by the Revenue Commissioners of the issue of a notice under subsection (13)(c),

such person shall be guilty of an offence and shall be liable on summary conviction to a fine of ^[12]>£1,000^{<[12][51]>[12]>}€1,265^{<[12]<[51][51]>}€5,000^<[51] or, at the discretion of the court, to imprisonment for a term not exceeding 6 months or to both the fine and the imprisonment.

(b) Any person who aids, abets, counsels or procures—

(i) the obtaining of a certificate of authorisation by means of a false statement,

(ii) the use by any person, other than the person to whom it was issued by the Revenue Commissioners, of a certificate of authorisation, or

(iii) the production to a principal of a document that is not a certificate of authorisation but purports to be such a certificate,

shall be guilty of an offence and shall be liable on summary conviction to a fine of ^[13]>£1,000^{<[13][51]>[13]>}€1,265^{<[13]<[51][51]>}€5,000^<[51] or, at the discretion of the court, to imprisonment for a term not exceeding 6 months or to both the fine and the imprisonment.

(c) Any person who—

(i) fails to enter on a relevant payments card or relevant tax deduction card such particulars as are required to be entered on that card by virtue of this section and any regulations made under this section,

(ii) fails to return to the Revenue Commissioners the relevant payments card or relevant tax deduction card in accordance with subsection (13)(b),

(iii) returns to the Revenue Commissioners any such card on which are entered particulars which are incorrect in any material particular,

(iv) fails to comply with any provision of regulations made under this section requiring such person—

(I) to make any declaration,

(II) to provide any information or particulars to principals, ^[46]>or^<[46]

(III) to keep or produce any records, documents or ^[47]>declarations,^<[47][47]>declarations, or^<[47]

^[48]>

(IV) to deliver declarations to the Revenue Commissioners,

^<[48]

(v) fails to give a subcontractor from whom tax has been deducted under subsection (1) a certificate of deduction in the prescribed form containing such particulars as are required to be entered in that certificate by virtue of any regulations made under this section, or

(vi) being a company to which a certificate of authorisation has been issued under subsection (11), fails to notify the Revenue Commissioners of a change in control (within the meaning of section 432) of the company,

shall be guilty of an offence and shall be liable on summary conviction to a fine of ^[14]>£1,000^{<[14][51]>[14]>}€1,265^{<[14]<[51][51]>}€5,000^<[51].

(15) Notwithstanding any other enactment, summary proceedings in respect of offences under this section may be instituted within 10 years of the commission of the offence.

(16) Section 987(4), subsection (4) of section 1052 (other than as that subsection applies in relation to proceedings for the recovery of a penalty in relation to a return referred to in sections 879 and 880), ^[53]>subsections (3) and (7) of section 1053^{<[53] [53]>}subsections (9) and (17) of section 1077E^<[53] and sections 1068 and 1069 shall, with any necessary modifications, apply for the purposes of this section and any regulations made under this section as they apply for the purposes of those provisions.

(17) Any person who is aggrieved by a refusal by the Revenue Commissioners to issue a certificate of authorisation under this section may, by notice in writing to that effect given to the Revenue Commissioners within 30 days from the date of such refusal, apply to have such person’s application heard and determined by the Appeal Commissioners.

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(17A) Any person who is aggrieved by the cancellation of a certificate of authorisation by the Revenue Commissioners in accordance with subsection (13) may, by notice in writing to that effect given to the Revenue Commissioners within 30 days from the date of such cancellation, appeal against such cancellation to the Appeal Commissioners but, pending the decision of the Appeal Commissioners in the matter, unless the Revenue Commissioners, on application to them, reinstate the certificate of authorisation pending the making of that decision, the certificate shall remain cancelled.

^<[10]

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(17B) Any person who is aggrieved by the imposition by the Revenue Commissioners, under subsection (12), of a specified limit in relation to a relevant payments card, or an amended relevant payments card, as the case may be, may, by notice in writing to that effect given to the Revenue Commissioners within 30 days from the date of issue of the relevant payments card concerned, appeal against the imposition of such a limit to the Appeal Commissioners, but, pending the decision of the Appeal Commissioners in the matter, the limit shall remain in place.

^<[37]

(18) The Appeal Commissioners shall hear and determine an appeal made to them under ^[38]>subsection (17) ^[11]>or subsection (17A)^{<[11]<[38][38]>}subsection (17), (17A) or (17B)^<[38] as if it were an appeal against an assessment to income tax and, subject to subsection (19), the provisions of the Income Tax Acts relating to such an appeal (including the provisions relating 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.

(19) On the hearing of an appeal made under ^[39]>subsection (17)^<[39][39]>subsection (17) or (17B)^<[39], the Appeal Commissioners shall have regard to all matters to which the Revenue Commissioners may or are required to have regard under this section.

(20) For the purposes of the hearing or rehearing of an appeal under ^[25]>subsection (17)^{<[25][31]>[25]>}subsection (17) or subsection (17A)^{<[25]<[31][31]>}subsection (17), (17A) or (17B)^<[31], the Revenue Commissioners may nominate any of their officers to act on their behalf.