I. RCT: Extended filing deadline

Revenue have advised that the filing date for the 2008 RCT 35 of 15 February 2009 is being extended to Friday 27 February 2009. In addition, there has been a delay in the issue of Form RCT 35 2008 to principal contractors, but only in relation to those who do not file their RCT 35 using ROS.

eBrief No. 4/09, which is reproduced at Section 2.05, provides details of the above.

II. Error in Relevant Payments Cards

Revenue have advised that a number of relevant payments cards (RCT 47) have issued to Principal Contractors in error. These cards were issued in the week commencing 8 December. The year shown on these cards is a year earlier than 2008. It should be noted that the cards are invalid and should not be used.

The regime which Revenue operate in relation to Relevant Contracts Tax is harsh and inflexible, with settlements being sought involving tax payments where there has clearly been no loss of revenue, and where disproportionate penalties are sought on foot of innocent oversight or administrative mistakes on the part of the taxpayer. Relevant Contracts Tax is not a fiduciary tax like PAYE or VAT – it is an administrative enforcement arrangement for the convenience of the Revenue Commissioners.

Particularly in this context, it is unacceptable that the Revenue Commissioners consider that administrative mistakes on their part can be waved away with an apology for “inconvenience caused”. Such an approach on the part of the taxpayer in the context of an RCT settlement would cut little ice.

In particular we need to know how many erroneous RCT47 cards were issued, why the erroneous cards could not be accepted by virtue of an administrative arrangement, and what Revenue's approach will be should there be a need for any settlement arising on foot of the mistaken use of the incorrect card.

eBrief No. 66/2008, which provides further details, is reproduced at Section 2.06.

ICAI, through the CCAB-I representation on TALC, raised the above issues in relation to the incorrectly issued relevant payments cards with Revenue in January for further clarification.

Revenue confirmed that the relevant payments cards (RCT47s) issued in error were not requested by the principal contractors for 2009. Therefore, no amended cards will issue in these cases.

As noted in eBrief No.66/08, Revenue advised that a number of relevant payments cards issued to principal contractors in error. These cards were issued in the week commencing 8 December with a year shown on the cards earlier than 2008. The eBrief confirmed that the cards are invalid and should not be used. Revenue said that it wrote to the principal contractors and the subcontractors involved notifying them of the error. In addition to the dates on the card being incorrect, we understand from our meeting with Revenue that the relevant payments cards were not requested by the principal contractors in the first instance for 2009, and therefore Revenue will not be issuing any amended cards in these cases.