Revenue have informed taxpayers operating in the construction sector and their agents to expect additional queries, profile interviews and audits. In addition they have indicated that they will also increase the number of unannounced visits to construction sites.
The focus will be on compliance risks including the following;
- Proper operation of the eRCT system generally, to include; – Ensuring the principal contractors are fully reporting payments through the eRCT system – Principal contractors reporting “Unknown” sub-contractors
- Reconciling reported activity under the Home Renovation Incentive with VAT returns file;
- Reconciling reported activity under the eRCT system, PAYE / PRSI returns, VAT returns and examining profit margins;
- Proper operations of the VAT reverse charge;
- Proper operation of PAYE / PRSI obligations;
- Ensuring employees are not misclassified as subcontractors;
- Ensuring obligations of non-resident principals / sub-contractors are being fully met.
Given this notification from Revenue it is strongly recommended that anyone operating in the construction sector would perform a self-review of their tax affairs and address any irregularities before any Revenue compliance intervention begins.
If you require any assistance in this area or require more information in relation to the areas on which Revenue are likely to focus, please do not hesitate to contact us