In August 2015 Revenue announced that there will be increased compliance interventions in the construction sector. All businesses operating in this sector should be aware and ensure they are fully compliant. Please contact us should you require any assistance. In line with the increasing activity in the construction sector, Revenue will be increasing its ongoing national programme of compliance interventions in relation to Relevant Contracts Tax and the construction sector in general. The focus will be on compliance risks including the following:- 1. Proper operation of the eRCT system generally, to include:- - Ensuring that principal contractors are fully reporting payments through the eRCT system; - Principal contractors reporting "Unknown" sub-contractors; 2. Reconciling reported activity under the Home Renovation Incentive (HRI) with VAT returns filed; 3. Reconciling reported activity under the eRCT system, PAYE/PRSI returns, VAT returns and examining profit margins; 4. Proper operation of the VAT Reverse Charge; 5. Proper operation of PAYE/PRSI obligations; 6. Ensuring employees are not misclassified as subcontractors; 7. Ensuring obligations of non-resident principals/sub-contractors are being fully met. As is our normal practice, we strongly encourage self-review of those operating in the construction sector and recommend that principals/sub-contractors regularise their affairs before any Revenue compliance intervention begins. There will be increased interventions in the sector so taxpayers and agents can expect additional aspect queries, profile interviews and audits. We will also increase our programme of unannounced visits to construction sites.

What questions do you have?

We are happy to help. Please post your comment below or call Paul Leonard, Partner at Cooney Carey, on 01 677 9000. Alternatively, send him an email: pleonard@cooneycarey.ie

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