“The reminder letter sets out the potential consequences of failing to submit the RCT 35 annual return. The text of the letter is provided below:

Principal Contractors are obliged to make an annual return on form RCT35 to Revenue showing details of all payments (both taxed and untaxed) made by them to subcontractors.

My records indicate that the form RCT35 for 2006 [due by 15 February 2007] in respect of your business has not been filed.

You should send the form RCT35 for 2006 to P.O. Box 354, Office of the Collector General, Sarsfield House Limerick, regardless of whether you are a contractor or sub-contractor now. Any outstanding forms RCT35 for earlier years should continue to be submitted to this office.

The failure to submit the form RCT35 for 2006 may lead to one or more of the following:

• Revenue instituting legal proceedings in respect of such failure;
• Revenue estimating the amount of Relevant Contracts Tax owed and recovering such amount through the normal enforcement channels;
• Referral of your tax affairs for audit

If you are the holder of a C2, failure to comply with your legal obligation to file this return may lead to the C2 being withdrawn from you.

If you did not engage any subcontractors during 2006, please enter ‘NONE’ in the relevant box on Page 1 of the form RCT35, sign the declaration (also on Page 1) and return the form to the Office of the Collector General. If for any reason you consider that a form RCT35 is not due for 2006, please inform this Office of the reason.

Please note that for the first time a prosecution programme for non-filing of Forms RCT 35 under S1078 of the Taxes Consolidation Act, 1997 will be commencing later this year.”