S.I. No. 31/1993:

INCOME TAX (RELEVANT CONTRACTS) REGULATIONS, 1993.

INCOME TAX (RELEVANT CONTRACTS) REGULATIONS, 1993.

The Revenue Commissioners, in exercise of the powers conferred on them by section 17 (as amended by section 28 of the Finance Act, 1992 (No. 9 of 1992)) of the Finance Act, 1970 (No. 14 of 1970), hereby make the following Regulations:

1. (1) ( a ) These Regulations may be cited as the Income Tax (Relevant Contracts) Regulations, 1993.

( b ) The Income Tax (Relevant Contracts) Regulations, 1971 to 1992, and these Regulations may be cited together as the Income Tax (Relevant Contracts) Regulations, 1971 to 1993.

(2) These Regulations shall come into operation on the 8th day of February, 1993.

2. In these Regulations "the Principal Regulations" means the Income Tax (Construction Contracts) Regulations, 1971 ( S.I. No. 1 of 1971 )--

( a ) as amended by the Income Tax (Construction Contracts) Regulations, 1976 ( S.I. No. 274 of 1976 ), the Income Tax (Construction Contracts) Regulations, 1985 ( S.I. No. 239 of 1985 ), and the Income Tax (Construction Contracts) Regulations, 1991 ( S.I. No. 240 of 1991 ), and

( b ) as construed by reference to the Income Tax (Relevant Contracts) Regulations, 1992 ( S.I. No. 281 of 1992 ).

3. The Income Tax (Relevant Contracts) Regulations, 1971 to 1992, are hereby amended--

( a ) by the substitution in the Principal Regulations of the following Regulations for Regulation 4:

"Application for sub-contractor's certificate.

4. (1) A person who desires to obtain a sub-contractor's certificate shall make application on the prescribed form for such certificate to the Revenue Commissioners.

(2) Subject to paragraph (3) of this Regulation and Regulation 4A of these Regulations, an application for the certificate referred to in paragraph (1) of this Regulation shall be accompanied by a photograph--

( a ) where the person applying for the certificate is an individual, of the individual by whom the certificate, if issued, will be produced to a principal in accordance with subsection (8) (a) of the principal section, and

( b ) where the person applying for the certificate is not an individual, of the individual nominated by the person so applying in accordance with Regulation 4A (1) of these Regulations.

(3) The photograph to accompany the application referred to in paragraph (1) of this Regulation shall--

( a ) be a full face photograph being, in the opinion of the inspector, an adequate facial likeness of the individual referred to in paragraph (2) of this Regulation,

( b ) be signed on the reverse by that individual, and

( c ) comply with such conditions as to size, type or other features as the Revenue Commissioners may direct.

Nomination of individual who will produce sub-contractor's certificate.

4A. (1) Where the person making application for a sub-contractor's certificate in accordance with Regulation 4 of these Regulations is not an individual, the person making the application shall nominate, at that time and on the prescribed form, the individual by whom the said certificate, if issued, will be produced to a principal in accordance with subsection (8) (a) of the principal section.

(2) ( a ) The individual nominated in accordance with paragraph (1) of this Regulation shall--

(i) in a case where the applicant for a sub-contractor's certificate is a private company, be a proprietary director of that company, or

(ii) in a case where the applicant for a sub-contractor's certificate is a company other than a private company, be a director of that company, or

(iii) in a case where the applicant for the sub-contractor's certificate is a partnership, be a partner in that partnership.

( b ) Notwithstanding subparagraph (a) of this paragraph, where, in relation to a company or partnership, it would in the opinion of the inspector be impracticable for an individual nominated in accordance with paragraph (1) of this Regulation to be a proprietary director, director or partner, as the case may be, the individual so nominated shall be a full-time employee of the applicant company or partnership, as the case may be, who, in the opinion of the inspector, is a suitable individual to be so nominated.

( c ) In this paragraph--

"director" has the same meaning as in section 103 (5) of the Corporation Tax Act, 1976 ;

"full-time employee" means, in relation to a company or partnership, an employee who is employed on a full-time basis and whose duties are such that he is required to devote substantially the whole of his time to the service of the company or partnership, as the case may be;

"private company" has the meaning assigned to it by section 33 of the Companies Act, 1963 ;

"proprietary director" has the meaning assigned to it by subsection (1) of the principal section.

(3) As soon as the individual nominated in accordance with paragraph (1) of this Regulation ceases to act in the nominated capacity on behalf of the person who nominated him, that individual shall immediately surrender the sub-contractor's certificate to the Revenue Commissioners.

Ownership and issue of sub-contractor's certificate.

4B. (1) A sub-contractor's certificate shall remain the property of the Revenue Commissioners at all times.

(2) A sub-contractor's certificate shall be issued to the individual whose name and photograph appears thereon at such office of the Revenue Commissioners as the inspector may direct.

(3) The individual to whom the sub-contractor's certificate is to be issued in accordance with paragraph (2) of this Regulation may be required to provide such evidence of identity as the inspector may consider necessary and shall, immediately on receipt of the certificate, sign an acknowledgement of such receipt in such form as the inspector may require.

(4) A sub-contractor's certificate shall only be produced to a principal in accordance with subsection (8) (a) of the principal section by the individual whose photograph appears thereon and to whom the sub-contractor's certificate was issued in accordance with paragraph (2) of this Regulation.

Validity of sub-contractor's certificate.

4C. (1) A sub-contractor's certificate shall, unless otherwise recalled or cancelled by the Revenue Commissioners, be valid for a period of one year.

(2) ( a ) Notwithstanding paragraph (1) of this Regulation, where an applicant for a sub-contractor's certificate has--

(i) average annual sales, arising from relevant operations in the period of three years ending with the end of the last period of account ending prior to the date of the application, exceeding £20,000,000, and

(ii) satisfied the Revenue Commissioners that he has complied with all of the requirements set out in subparagraphs (i) to (iv) of paragraph (a) of subsection (7) of the principal section,

the certificate shall, unless otherwise recalled or cancelled by the Revenue Commissioners, be valid for a period of three years.

( b ) Where subparagraph (a) of this paragraph applies to a sub-contractor, he shall be regarded as a class of sub-contractor within the meaning of subsection (5) (a) (i) of the principal section.

( c ) In this paragraph--

"period of account" means a period for which an account is made up in relation to the business in question;

"relevant operations" has the meaning assigned to it in subsection (1) of the principal section.

( d ) This paragraph shall not apply in a case where the certificate would not have issued but for the provisions of paragraph (b) of subsection (7) of the principal section being applied.",

( b ) in Regulation 8 of the Principal Regulations, by the deletion of paragraph (2),

( c ) by the substitution in the Principal Regulations of the following Regulation for Regulation 19:

"19. (1) A principal shall, before making an application to the Revenue Commissioners for a relevant payments card in accordance with subsection (8) (a) of the principal section, examine the sub-contractor's certificate produced to him and satisfy himself that the individual who produced the sub-contractor's certificate is the individual whose photograph appears thereon.

(2) A sub-contractor or, where the sub-contractor is not an individual, the individual nominated in accordance with Regulation 4A (1) of these Regulations shall, in the presence of a principal, sign, in the space provided therefor, the form on which the principal makes application to the Revenue Commissioners for a relevant payments card in respect of that sub-contractor.",

and

( d ) in Regulation 21 of the Principal Regulations--

(i) by the deletion of subparagraphs (a) and (b) of paragraph (3), and

(ii) by the addition of the following paragraph after paragraph (3):

"(4) A principal shall retain relevant payments cards and relevant tax deduction cards for a period of six years after the end of the year to which they refer or for such shorter period as the Revenue Commissioners may authorise in writing.".

GIVEN this 5th day of February, 1993.

D. B. QUIGLEY,

Revenue Commissioner.

EXPLANATORY NOTE.

These Regulations make certain amendments and extensions to the Income Tax (Relevant Contracts) Regulations, 1971 to 1992, in relation to--

( a ) the making of an application for a sub-contractor's certificate, including a requirement that an application be accompanied by a photograph of the individual by whom the certificate, if issued, will be produced to a principal;

( b ) in a case where the applicant is not an individual, the nomination of the individual by whom the sub-contractor's certificate, if issued, will be produced to a principal and the imposition of an obligation on the individual so nominated to surrender the sub-contractor's certificate to the Revenue Commissioners immediately he ceases to act on behalf of the person who nominated him;

( c ) the period of validity, the ownership, method of issue, collection and production of sub-contractors' certificates;

( d ) the procedures to be followed by a principal in making an application to the Revenue Commissioners for a relevant payments card;

( e ) the cancellation of requirements for principals to return certain documents to the Revenue Commissioners and the substitution instead, in respect of certain of these documents, of a six year retention period.

The Regulations have effect as from the 8th of February, 1993.