Pearse Doherty (Donegal, Sinn Fein)

I move amendment No. 10:

In page 28, between lines 31 and 32, to insert the following:

“Report on expansion of Professional Services Withholding Tax (PSWT) to private sector

20. The Minister shall, within 3 months of the passing of this Act, prepare and lay before Dáil Éireann a report on the expansion of Professional Services Withholding Tax (PSWT) to the private sector to assess the potential of designating large contractors of professional services as accountable persons.”.

This again relates to the expansion of the professional services withholding tax to the private sector and assessing the potential of designating large contractors of professional services as accountable persons. We tabled this amendment just to tease the matter out. It needs a bit of work to see whether this measure would be appropriate. That is why I want to see a report on this or some work on it. What is the thinking within the Department in relation to the expansion of the professional services withholding tax to the private sector and assessing the potential for designating large contractors of professional services as accountable persons?

Ireland takes a sensible approach in applying a withholding tax whenever a public body is contracted. We dealt with circumstances where a public body contracts somebody for professional services in section 19, but what that does is simplify tax collection for the individuals, for the companies providing the services and for Revenue. The question here is whether there is potential to extend this well-established practice to the private sector by treating large contracting companies the same way as public bodies. Has the Department or Revenue looked at this? Is there merit in that proposal?