Construction firms are in danger of leaving themselves open to penalties by failing to fully grasp detailed new tax compliance rules, a leading advisory firm warned yesterday.
BDO Ireland said that recent changes to Revenue’s compliance terms could put building firms in a vulnerable position ahead of a potentially busy period.
“Given the current need for the development of infrastructure within our economy — the building of schools, additional housing requirements, roads — and the expectation that this need will continue in the coming years, Revenue is likely to maintain focus on compliance within the construction sector.
"In this regard, businesses need to be fully informed of their respective compliance obligations to mitigate against any potential exposures that could arise,” said Ivor Feerick, partner in charge of indirect tax at BDO Ireland.
BDO yesterday held a seminar in response to the changes in tax compliance affecting companies within the construction sector — particularly relating to registration and new projects.
“The publication by Revenue of the tax defaulters list for 2015 saw settlements for the year totalling approximately €14m within the construction sector; which highlights the ongoing lack of compliance within the sector, and will undoubtedly continue to be a focus for Revenue in the coming years,” said Mr Feerick.
He added that the RCT [the new Revenue Contracts Tax penalty scheme] can appear very complex in nature.
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