Michael Noonan (Limerick City, Fine Gael)
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I am informed by the Revenue Commissioners that the number of active registrations for Relevant Contracts Tax (RCT) and the number of contract notifications entered on the eRCT system for the years set out as follows.

Year	Active RCT Registrations	Contract Notifications
2012	58,855	208,865
2013	62,443	263,994
2014 (to 19/10/2014)	63,259	253,969

I am also informed that every contractor who enters into a contract with a subcontractor in relation to construction, forestry or meat processing operations is obliged to register as a principal contractor for RCT. Subcontractors, who are not already registered for RCT, will be automatically registered for RCT on foot of a contract notification from a principal contractor.  On submission of this contract information by the principal contractor, the subcontractor is immediately issued with a 'Contract Confirmation' letter, with full details of the nature of the engagement between the principal and the subcontractor, and the subcontractor is advised that he/she is obliged by law to contact Revenue if any of the details of the engagement are materially incorrect. It is at this point that workers with concerns should respond to Revenue and if the Deputy has any information in this regard, he should encourage them to do so.

Failing any objection to the nature of the engagement the Principal is issued with a deduction rate notification, i.e. RCT will be deducted at 0%, 20% or 35%, as appropriate, from any payments made under the contract. Registering for RCT is a necessary pre-requisite to enable a principal or subcontractor to comply with their RCT obligations and, consequently, refusing to register a principal or subcontractor does not arise.

On the eRCT system, before notifying a contract to Revenue, a principal contractor must already have satisfied themselves that the contract being entered into with the sub-contractor is not a 'contract of service' that is one in which the relationship between the principal and the sub-contractor is in the nature of an employer/employee.  In addition, where the contract is a labour only contract, the principal contractor is required to supply additional information regarding the contract (similar to the information that a principal had previously been required to consider on the Form RCT1).

Decisions about employed or self-employed status of workers have to be made on the facts and the 'Code of Practice for Employment or Self-Employment Status of Individuals' is designed to assist both parties to a contract to determine if that contract is, by its nature, either:

-A 'contract of services',  that is, an employer employee arrangement, in which case the PAYE system applies to payments made, or

-A 'contract for services' that is, not an employer employee arrangement, in which case the eRCT system applies.

The 'Code of Practice for Employment or Self-Employment Status of Individuals' is not a Revenue Code, but rather was compiled collaboratively by the following bodies, which are all members of the Hidden Economy Monitoring Group - ICTU, the Department of Jobs, Enterprise and Innovation, NERA, the Department of Social Protection, the Department of Finance, the SFA, IBEC, CIF and Revenue.

The primary responsibility in relation to employment rights rest with NERA, in relation to PRSI entitlements with the Department of Social Protection and the proper implementation of the tax code with Revenue. These agencies work separately and also together in joint investigation units.

I am informed that the Revenue Commissioners are better placed since the introduction of the eRCT system to monitor RCT activity in realtime, to identify risks and to intervene early in cases with the highest risk of evasion. However this activity can be enhanced by the active engagement by workers when they receive a contract confirmation letter.