Advice needed RCT not paid by Main contractor to Revenue.

Hi all

My Husband is a sole trader and completed a contract in 2011 for a main contractor. The main contractor with held the tax and was to issue us with Pink Slips (C45's) which we can submit to revenue. My Hubby received net payment for the contract and he has been constantly trying to get paperwork from the builder. Now the builder has been closed by the revenue and is not trading. What position does this situation leave us in? the amount comes to €2500 in with held tax that we cannot offset against our tax liability for 2011, but as this has not been paid to the revenue how do we handle this in submitting our tax return as the money he received was net amount and will be classed as income in the tax return as a gross figure?

Is it a situation that we just have to take the hit and have to pay tax on the income even though it was with held or will we need to talk to the revenue.

Sorry if this is not clear and i am sure this is happening all over the country but any advice would be appreciated.

Talk to your Tax Inspector in the first instance.

I did call the revenue about the situation weeks before we heard he had been closed down and i was told that we would need to give his details so they could look into the situation but he was not clear if it would be any help to us. We were hoping that the contractor would sort his affairs out and gave him time but i was just wondering was there anyone that has been in same position as ours.

glynner said:

I did call the revenue about the situation weeks before we heard he had been closed down and i was told that we would need to give his details so they could look into the situation but he was not clear if it would be any help to us. We were hoping that the contractor would sort his affairs out and gave him time but i was just wondering was there anyone that has been in same position as ours.

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If you have a look at the bottom paragraph of page 5 of this letter from the Collector General to the Institute of Taxation in 2008, you'll see what Revenue's policy is in a case like yours (). The bottom line is you've complied with your obligations, and suffered deduction of tax, and must be given credit for the tax withheld. If your husband is a generally compliant taxpayer and willing to put up with the additional scrutiny that examining this claim might bring, then you've nothing to worry about.

Thanks for that Mandelbrot we are tax compliant and will pursue for a tax credit much appreciated