Gary Gannon (Dublin Central, Social Democrats)
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264. To ask the Minister for Finance given current tax clearance certificate policies, which prevent businesses from applying for grants or new State contracts without one, to clarify why this policy also prevents payments to businesses that have completed work on existing State contracts (details supplied); if his Department will consider reviewing these regulations to ensure payments are not unduly disrupted; and if he will make a statement on the matter. [44237/24]

Jack Chambers (Dublin West, Fianna Fail)
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I would note at the outset that my Department officials made several attempts to contact the Deputy's office to obtain clarification on the circumstances which prompted this question, but unfortunately did not receive a response. As such, the following outlines tax clearance procedures more generally, but should the Deputy wish to seek information on a specific matter concerning the current procedures, he may wish to contact my office directly with the details.

A Tax Clearance Certificate is confirmation from Revenue that an applicant's tax affairs are in order. However, Revenue may issue a Tax Clearance Certificate to a customer who has tax arrears where the arrears are covered by an instalment arrangement.

As such, tax clearance is required for various purposes, such as renewal of a variety of licences and permits, public sector contracts, grants, subsidy payments and Government supports. The current tax clearance procedures in relation to the payment of grants, subsidies and similar type payments by Government Departments and other public sector bodies are set out in Circular 44/2006. Meanwhile, the current tax clearance procedures in relation to Public Service Contracts are set out in Circular 43/2006.

The procedures in these circulars have applied to all applications received after 1 January 2007 and there are currently no plans to amend them. It should be noted, however, that the Department of Public Expenditure, National Development Plan Delivery and Reform has responsibility for public sector procurement rules generally.

Further details on the current tax clearance procedures in respect of grants, subsidies and similar type payments is available at: circulars.gov.ie/pdf/circular/finance/2006/44.pdf

Meanwhile, further details on the current tax clearance procedures in respect of public sector contracts is available at: circulars.gov.ie/pdf/circular/finance/2006/43.pdf