Revenue has published eBrief No. 03/11 which sets out their view that all aspects of RCT law – including deduction by the principal contractor and offset by Revenue of RCT against outstanding taxes – must be applied as normal, notwithstanding the fact that a liquidator, receiver or examiner has been appointed to the subcontracting company.

In the eBrief, Revenue confirms that any RCT deducted from a company in liquidation, receivership or examinership and remitted will be offset against outstanding taxes in the order statutorily provided for, with any balance being repaid to the liquidator, receiver or examiner.

The eBrief also sets out the difference in treatment applied where RCT is deducted on foot of a contract entered into by a company prior to receivership or liquidation and new contracts entered into by the receiver/liquidator (in his capacity as receiver/ liquidator of the company) should the receiver/ liquidator continue to trade the business.

eBrief No. 03/11 is available at http://www.revenue .ie/en/practitioner/ebrief/2011/no-032011.html