Revenue have advised that a number of relevant payments cards (RCT 47) have issued to Principal Contractors in error. These cards were issued in the week commencing 8 December. The year shown on these cards is a year earlier than 2008. It should be noted that the cards are invalid and should not be used.
The regime which Revenue operate in relation to Relevant Contracts Tax is harsh and inflexible, with settlements being sought involving tax payments where there has clearly been no loss of Revenue, and where disproportionate penalties are sought on foot of innocent oversight or administrative mistakes on the part of the taxpayer. Relevant Contracts Tax is not a fiduciary tax like PAYE or VAT - it is an administrative enforcement arrangement for the convenience of the Revenue Commissioners.
Particularly in this context, it is unacceptable that the Revenue Commissioners consider that administrative mistakes on their part can be waved away with a trivial apology for "inconvenience caused". Such an approach on the part of the taxpayer in the context of an RCT settlement would cut little ice.
In particular we need to know how many erroneous RCT47 cards were issued, why the erroneous cards could not be accepted by virtue of an administrative arrangement, and what Revenue's approach will be should there be a need for any settlement arising on foot of the mistaken use of the incorrect card. ICAI will raise these issues with Revenue at the earliest opportunity at TALC.
eBrief No. 66/2008, which provides further details, is reproduced below.
"Important information for Principals and Subcontractors in the Construction, Forestry and Meat Processing Sectors
Relevant Payments Cards.
It has come to Revenue's attention that a number of relevant payments cards (RCT 47) have issued to Principal Contractors in error. These cards were issued in the week commencing 8th December. The year shown on these cards is a year earlier than 2008.
Although the cards also bear the legend effective from 01/01/2009, they are invalid and should not be used.
When Revenue issues a relevant payments card on foot of a Form RCT 46A, we also issue a notification to the subcontractor that a card has issued to the principal contractor. Subcontractors may have received such letters as a result of the error.
Revenue have identified the principals and subcontractors involved and are in the process of writing to both.
The principal contractors will be given a list of the cards that issued in error and asked to return them to Revenue. If they have already disposed of the cards, they will be asked to confirm same in writing.
The subcontractors will be advised that the notification issued in error.
The Revenue Commissioners apologise for any inconvenience caused by this matter."