Relevant Contracts Tax (RCT)

Section 18 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 - see Tax Briefing, Issue 37 [October 1999] for details. The Revenue Commissioners made new regulations to provide for the raising of monthly estimates where a principal contractor fails to make a monthly return (RCT 30) - see Tax Briefing, Issue 40 [June 2000] for details.

A principal contractor who deducts tax from payments made to subcontractors is obliged to make a monthly return to the Collector-Generals on Form RCT 30 and remit the tax deducted tax during a month within 9 days after the end of the income tax month. A principal contractor if issued with a monthly Form RCT 30 is obliged to make a return, whether or not tax has been deducted. Regulation 13 provides for the Collector-General to issue a monthly estimate of tax due where a principal contractor fails to remit the tax deducted or fails to make the required monthly return to the Collector-General.

The Collector-General's Office are issuing Leaflet CG 10 with the October issue of forms RCT 30 to all principal contractors reminding them of the new regulations and inviting those who are no longer operating as principal contractors to advise their Inspector of Taxes of the change in their circumstances. Former principal contractors should complete the form contained with Leaflet CG10 and return it to their Inspector of Taxes. This will enable the tax offices update the records and avoid the Collector-General's Office issuing unnecessary estimated assessments.