Revenue Note for Guidance
Section 530F sets out the obligations on principals to deduct and to pay tax to the Revenue Commissioners, including an obligation to pay tax at 35% of the amount of a payment where for example payment is not notified to Revenue in advance of making the payment or an appropriate deduction is not made from the payment to the subcontractor. It provides for a maximum penalty of €5,000 in the event of non-compliance. It also provides for adjustment of the tax liability of principals who have not complied with their obligations under the scheme The penalty amount will not be affected by any adjustment to the tax liability. It also allows for Revenue to require contract details to be supplied where a principal gives notification of a previously unreported payment. Where a payment is made to a subcontractor, the section also requires a principal to give the subcontractor a copy of the relevant deduction authorisation or details from the deduction authorisation.This section also allows for payment to be made to a subcontractor in advance of notifying Revenue where a principal is unable to give advance notification due to a “persistent technology systems failure” (as defined in section 530).
Relevant Date: Finance Act 2021