Business Irish

Sunday 25 September 2016

Revenue to link construction projects to contractors

Paul O'Donoghue

Published 08/12/2015 | 02:30

Companies are now obliged to register a Site Identification Number and all those associated with activity at it when they start a new project.
Companies are now obliged to register a Site Identification Number and all those associated with activity at it when they start a new project.

The Revenue Commissioners has introduced an identification system for building projects that will give the organisation more oversight over the construction sector.

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From the start of December companies are now obliged to register a Site Identification Number and all those associated with activity at it when they start a new project.

Under the system Revenue can identify individual sites and monitor all activities and payments related to any projects at that site, allowing it to assess how much tax those working on individual construction projects should be liable to pay.

The Head of accountants BDO Ireland's VAT and Relevant Contracts Tax Practice, Ivor Feerick, said the new system means that tax authorities will have "an in-depth view of all construction contracts pertaining to each specific site".

He added: "This will allow a more in-depth analysis by Revenue of the payroll tax, VAT and corporation [and] income tax likely to emanate from each project as the site specific detail will facilitate a holistic approach to each project that a principal undertakes.

"The Revenue is very aware of the potentially very significant tax contribution from the construction sector in the coming years and is very keen to ensure it is in a position to keep a watchful eye on the prize."

He said that the move must also be seen in the context of several other processes being used by Revenue to focus on the construction sector. "These include unannounced site visits by Revenue officials, the gleaning of information from suppliers of goods and services into the construction trade [and] the cross referencing of VAT and payroll tax to identify unusual trading patterns," Mr Feerick said.

Irish Independent

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