Robert Troy (Longford-Westmeath, Fianna Fail)
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189. To ask the Minister for Education and Skills the reason many schools are now facing a tax liability bill for projects undertaken under the summer works scheme over the past number of years; if his attention has been drawn to the scale of tax liability faced by many schools; the estimated number of schools facing a retrospective tax liability bill for summer works schemes; and the aggregate amount involved. [25563/17]

Richard Bruton (Dublin Bay North, Fine Gael)
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When a school is given approval for a school building project, regardless of the Scheme under which the grant is being made, it is informed in its letter of approval that the Revenue Commissioners regard the school authority as a “Principal Contractor” for the purposes of the building project. What this means, in practical terms, is that the school must register with the Revenue Commissioner’s online system subsequently following the Revenue Commissioner’s instructions in relation to deducting and paying over tax, as appropriate, for the contractor carrying out the works. No tax liability will arise for schools if they comply fully with this requirement.

The grant approval letter also advises schools that the Revenue Commissioners has prepared a Guidance Note to assist them in this matter and that this is available on the Revenue Commissioners’ website. My Department's website also has a link to this document.

It is a mandatory requirement for schools to confirm to my Department, in writing, in their individual Forms of Acceptance for the Grant that they will comply with this requirement. Subsequently, at all stages of the grant draw-down, schools must confirm to my Department, again in writing, that they have adhered to this requirement. The grant for the building project cannot be drawn down unless these confirmations are received from a school.

Given the imperative to provide my Department with the written confirmations outlined, my Department is not aware of any school facing a tax liability for a failure to comply with the Revenue Commissioners’ requirements.