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Construction Operations-Summary Definition

“Construction operations” means operations of any of the following descriptions:

  1. The construction, alteration, repair, extension, demolition or dismantling of buildings or structures;
  2. The construction, alteration, repair, extension or demolition of any works forming, or to form, part of the land, including walls, road-works, power lines, telecommunication apparatus, aircraft runways, docks and harbours, railways, inland waterways, pipelines, reservoirs, water mains, wells, sewers, industrial plant and installations for purposes of land drainage;
  3. The installation in any building or structure of systems of heating, lighting, air-conditioning, soundproofing, ventilation, power supply, drainage, sanitation, water supply, burglar or fire protection; The external cleaning of buildings (other than cleaning of any part of a building in the course of normal maintenance) or the internal cleaning of buildings and structures, in so far as carried out in the course of their construction, alteration, extension, repair or restoration;
    1. The installation in or on any building or structure of systems of telecommunications;
  4. The external cleaning of buildings (other than cleaning of any part of a building in the course of normal maintenance) or the internal cleaning of buildings and structures, in so far as carried out in the course of their construction, alteration, extension, repair or restoration;
  5. Operations which form an integral part of, or are preparatory to, or are for rendering complete such operations as are described in paragraphs (a) to (d), including site clearance, earth-moving, excavation, tunnelling and boring, laying of foundations, erection of scaffolding, site restoration, landscaping [1] and the provision of roadways and other access works;
  6. Operations which form an integral part of, or are preparatory to, or are for rendering complete, the drilling for or extraction of minerals, oil, natural gas or the exploration for, or exploitation of, natural resources;
  7. The haulage for hire of materials, machinery or plant for use, whether used or not, in any of the construction operations referred to in paragraphs (a) to (f).

Note 1: An example of when landscaping is a construction operation is when a house is being built or renovated and the gardens are landscaped as part of the overall work; landscaping is not in itself a construction operation


Construction operations-Detailed Definition

“Construction operations” means operations of any of the following descriptions:

(a) the construction, alteration, repair, extension, demolition or dismantling of buildings or structures

This definition includes the erection of “structures” such as gates, traffic lights, road signs, parking meters and garden sheds. It also includes the repair of such structures and the repair of any part of a building or of any system that has become a part of the fabric of the building. It does not include routine maintenance.

Contracts for repair work or for repair and maintenance would be included but not contracts for maintenance only. Repair includes the replacement of constituent parts e.g. the repair of a window by installing a new pane of glass or the repair of a tiled floor by replacing one or two broken tiles. This definition also includes works to alter a building or structure e.g. painting walls, replacing doors windows or kitchen presses but the alteration must be “material” to bring the work within the definition. Minor changes such as painting one wall or replacing one door in a building would not be considered sufficient.

(b) the construction, alteration, repair, extension or demolition of any works forming, or to form, part of the land, including walls, road works, power lines, telecommunication apparatus, aircraft runways, docks and harbours, railways, inland waterways, pipelines, reservoirs, water mains, wells, sewers, industrial plant and installations for purposes of land drainage

This definition includes work relating to telecommunication apparatus but this only extends to masts, underground cabling, telephone poles etc. For other aspects of the telecommunications industry see paragraph (ca).

Also included is the building of new roads and footpaths and repairs to existing ones. However routine road maintenance, clearing blocked drains and cleaning of roads and paths (including the removal of chewing gum) would not be included. Payments by builders to ESB Networks to facilitate the connection of newly built properties to the electricity network do not come within RCT as there is no construction operation involved in this transaction.

(c) the installation in any building or structure of systems of heating, lighting, air-conditioning, soundproofing, ventilation, power supply, drainage, sanitation, water supply, burglar or fire protection

This paragraph applies to the installation of systems, it would not cover the installation of “add- on” or stand alone packages to systems already in place in a building or structure. For example, while the installation of a fire alarm system would be covered, the placing of a few fire extinguishers in a building would not be. Similarly the installation of water meters, which does not take place as part of the installation of a system of water supply, would not be considered to be a construction operation.

(ca) the installation in or on any building or structure of systems of telecommunications

This paragraph covers the installation of systems to facilitate two-way communication by phone, whether mobile, landline or via the internet. As with paragraph (c) it only applies to systems. The installation of equipment which is added on or attached to a telecommunications system and which would not be capable of providing telecommunications on its own without being connected to an existing system would not be considered to be a construction operation. Examples of this type of equipment would include equipment to monitor internet usage, to block viruses or to provide back up data for security purposes. (d) the external cleaning of buildings (other than cleaning of any part of a building in the course of normal maintenance) or the internal cleaning of buildings and structures, in so far as carried out in the course of their construction, alteration, extension, repair or restoration

Cleaning is only a construction operation when it takes place in the context of an overall construction operation i.e. the cleaning that is necessary after a building or structure is erected, altered, repaired etc. Normal routine cleaning operations are not construction operations nor are specialist cleaning jobs such as the removal of graffiti from buildings or structures. However if the removal of the graffiti involves a repair to the building or structure this repair would be a construction operation.

(e) operations which form an integral part of, or are preparatory to, or are for rendering complete such operations as are described in paragraphs (a) to (d), including site clearance, earth-moving, excavation, tunnelling and boring, laying of foundations, erection of scaffolding, site restoration, landscaping and the provision of roadways and other access works

This paragraph brings a whole range of activities within the definition of construction operations. Not just the specific activities mentioned in the legislation are covered but any activities that could be considered to be integral to an overall construction project. For example the hire of a crane with a driver, or where the subcontractor erects and dismantles the crane, would be covered by this definition, as would the erection of scaffolding and the hire of skips to remove waste material related to construction activity.

Site investigation operations, except where these are imposed on the builder by regulation (such as archaeological investigations or environmental impact studies) would normally be considered to be construction operations where they involve a considerable degree of labour intensive fieldwork. If the investigations carried out are such that without them the design/construction of the building (leaving aside investigations which are imposed on the contractor by regulation) could not actually proceed, these investigations are considered to be an integral part of, or preparatory to, the construction operation. Work that is ancillary to the project or imposed on the contractor would not be considered construction operations. If the work is more of a professional services nature and the fieldwork is a very minor part of the investigations then RCT would not apply to any part of the contract. Where there is a significant amount of fieldwork (i.e. drilling, excavation etc) involved and the activity is integral, or preparatory, to the construction operation then RCT charge will apply to the full consideration where a single invoice is issued for the fieldwork and professional services.

Examples of site investigations: Archaeological digs are not considered an integral part of, or preparatory to the construction operation and are therefore not subject to RCT.

Geo-technical work involving excavation, drilling and other fieldwork to provide information necessary for the design and/or construction of a building or structure would generally be considered an integral part of, or preparatory to, construction. A contract for geo-technical services may involve significant fieldwork with some laboratory work and consultancy. Where the fieldwork is the significant part of the contract the full contract is subject to RCT.

A number of other activities also come within this definition. Where a new building is under construction or an existing building is being refurbished all the activities necessary to render the building complete would be considered to be construction operations. These would include plastering, painting, fitting kitchens and bathrooms, tiling, laying carpets and the installation of certain types of fitted blinds. Some of these activities would not necessarily be considered to be construction operations if they took place outside the context of “rendering complete” for example certain painting jobs and the installation of blinds.

It should be noted that landscaping is only a construction operation when it is carried out as part of rendering complete a construction project. Contracts for landscaping work entered into by principals such as local authorities where the landscaping is not part of an overall construction project are not within the RCT remit.

(f) operations which form an integral part of, or are preparatory to, or are for rendering complete, the drilling for or extraction of minerals, oil, natural gas or the exploration for, or exploitation of, natural resources

This paragraph is similar to paragraph (e) above. It brings within the definition of construction operations activities that are a necessary part of drilling for and extracting minerals etc for example site investigation, earth moving, site clearance, erection of scaffolding etc.

(g) the haulage for hire of materials, machinery or plant for use, whether used or not, in any of the construction operations referred to in paragraphs (a) to (f)

This paragraph includes all haulage operations related to the construction industry carried out by self-employed haulage operators. It includes the transportation of construction materials and machinery or plant used in construction operations. It would extend to the haulage of raw materials such as sand or gravel from sandpits to a production plant. The delivery of ready to pour concrete to a building site by an employee of the manufacturer or distributor (irrespective of where or how it is placed at the site) is not considered to be a construction operation. It is considered to be the supply of building materials. However, where either the supplier or the builder hires a self-employed haulier to deliver the concrete, this operation is considered to be a construction operation.

Relevant Contracts Tax (RCT) applies to payments made by a principal contractor to a subcontractor under a relevant contract i.e. a contract for the carrying out of, or the supply of labour for the carrying out of, relevant operations in the construction, meat processing and forestry industries. Tax is deducted by a principal contractor on payments to a subcontractor as advised by Revenue.

The scheme applies only where the relevant operations are performed under a relevant contract with a principal as defined in the RCT legislation.

For example if a private householder engages a builder to build an extension this is technically a relevant contract. The builder is working as a sub-contractor for the householder and carrying out a relevant operation in the construction industry. However, because the householder is not a “chargeable principal” i.e. a principal as defined in Section 531 Taxes Consolidation Act, 1997, RCT does not apply to any payments made to the subcontractor.

RCT is a withholding tax system whereby a principal contractor deducts tax at 35% or 20% from payments to subcontractors as advised by Revenue on the ROS system.

Guidance on confirming whether a contract is for labour only

During the Contract Notification process on ROS, the principal will be asked the following question:

“Are you satisfied that the contract is NOT a labour only contract?”

Before answering this question, the principal contractor must already have satisfied themselves that the contract is not a contract of employment in accordance with the Code of Practice for Determining Employment or Self-Employment Status of Individuals.
In order to allow the Revenue Commissioners monitor the application of the Code, further information is required where the contract is for labour only.

What is a labour only contract?

  • Under a labour only contract, the worker supplies labour only and does not supply materials for the job.
  • Furthermore the worker does not provide equipment other than the small tools of the trade.
  • While the provision of tools or equipment might not have a significant bearing on coming to a conclusion that employment status may be appropriate having regard to all the circumstances of a particular case, further information needs to be supplied to the Revenue Commissioners.
  • Where the contract is with an entity that supplies workers on a labour only basis, then the contract is for the provision of services and not a labour only contract.

To summarise, where the principal has considered the criteria in the Code of Practice for Determining Employment or Self-Employment Status of Individuals and concluded that the contract is not a contract of employment, further information must be provided to the Revenue Commissioners if the contract is a labour only contract as outlined above.

Steps to follow when engaging a subcontractor

The following steps are required to process a contract.

  1. Contract Notification
  2. Payment Notification
  3. Deduction Authorisation
  4. Deduction Summary

1. Contract Notification
You must provide Revenue with details of the subcontractor (name and tax reference number) and contract (location, start/end dates, estimated contract value, etc) through ROS. You must also declare that the contract is not a contract of employment.(view definition of Labour only Contract)

A principal should establish the identity of any subcontractor engaged on a relevant contract. It is a principal’s responsibility to take due care in ensuring the proper identity of all subcontractors engaged, from insurance, health and safety, employment and tax perspectives. This can be demonstrated through retention of copies of proof of identity. If a principal has not taken due care, he/she may be liable to RCT at 35% on any payments made to subcontractors with false identities. (see sample form and letter)

What happens if I don’t have a tax reference number for a subcontractor?
If you have no tax reference number for the subcontractor when you register the contract, you will be asked to provide additional details for the subcontractor (name, address, phone number, date of birth, etc) so that Revenue can contact the subcontractor directly.

Is “Estimated Contract Value” inclusive or exclusive of Value Added Tax?
If the VAT Reverse Charge applies to the payments on the contract, then the VAT exclusive amount should be input as part of the Contract Notification (i.e. you do not include VAT in the payment to the subcontractor). However if the VAT Reverse Charge does not apply (e.g. haulage, meat processing or forestry operations) then the VAT inclusive amount should be input.

2. Payment Notification
A principal Contractor will not be authorised to deduct tax from a payment until they have notified Revenue of the payment and received authorisation to make the deduction. Failure to properly notify Revenue will leave the principal liable for the RCT and penalties.
Prior to making a payment to a subcontractor you must advise Revenue online of the amount of the gross payment to be made. You must select the subcontractor from the list of contracts you have already notified to Revenue. You will not be able to complete a Payment Notification on a contract unless the contract has already been notified to Revenue.

3. Deduction Authorisation
Revenue will issue a “Deduction Authorisation” to you immediately in response to the Payment Notification. The Deduction Authorisation will specify the rate and the amount of tax you should deduct from the payment. This authorisation relates specifically to the payment notified. You must give a copy of the Deduction Authorisation to the subcontractor

4. Deduction Summary
A Deduction Summary containing details of all relevant payments about which you have notified Revenue will be issued to you through ROS at the end of each period.
On receipt of the Deduction Summary you should:
• Check to ensure that all payments made to subcontractors have been notified to Revenue.
• If the Deduction Summary accurately reflects all payments made, then you should arrange for payment of the RCT deducted by the due date. No further action is required. This is deemed to be the return.
• If the Deduction Summary requires amendment you should amend it online, submit it and arrange for payment of the tax due on or before the due date.
• No annual return required: The annual RCT 35 return will no longer be required from the tax year 2012 onwards (you will still be required to complete an RCT 35 return for 2011).

Revenue has advised that any amendments should be made to the relevant payments listed on the Deduction Summary and the Return should be filed on or before the due date.

Can I amend these relevant payment details after I have filed the Return or if the due date for the Return has passed?
No. You will not be able to amend these details once the return has been filed or deemed filed (if not filed by the due date). If any line items (payment details) require amendment you should amend these line items and file the return on or before the due date for the return. Where amendments need to be made after the return has been filed or deemed filed (if not filed by the due date) you should contact your local Revenue district. A surcharge will also apply to any amendments made after the due date for the return, and you may be liable for interest and penalties.

I have multiple contracts with the same contractor. Must I register each contract separately?
Yes. You will be required to register each contract separately in the new system unless they are considered to be part of an ongoing contract with the subcontractor. Each contract will be given a unique contract reference number and payment notifications should be made to Revenue under the relevant contract reference number.

How will I confirm that a contract with a subcontractor is an ongoing contract?
If a principal contractor engages a subcontractor to perform the same type of work at a number of sites, this could be viewed as being an ongoing contractual relationship, provided that:
• the terms of the contract do not change;
• the parties to the contract do not change; and
• the subcontractor does not have to compete for the work on the additional sites (i.e. submit a tender).
This includes situations where the jobs do not succeed each other immediately or where the work is performed on multiple sites. Only one relevant contract will need to be registered in the new system if the contract can be considered to be an ongoing contract.
You must register each contract separately in the new system, if any of the following apply:
• The subcontractor has to compete (e.g. tender) for new work;
• The contractual relationship between the parties has changed e.g. the principal sets up a new entity (e.g. a limited company) for each site;
• The contractual terms have changed significantly e.g. the payment arrangements have changed from fixed price to piece work;
• No payments were made in the preceding year to the subcontractor.
Each contract will be given a unique contract reference number and payment notifications should be made to Revenue under the relevant contract reference number.

Penalties
Revenue has indicated the following:
a) €5,000 penalty on a principal contractor for making payments to a subcontractor prior to the receipt of a payment notification.
b) €100 penalty for late filing of RCT returns or amended returns.
c) Application of interest on outstanding liabilities (0.0273% per day on liability amount)

1. What are the main changes affecting school Boards of Management as “principal contractors”?

  • Compulsory electronic communication: From 1st January 2012, RCT principal contractors (School Boards of Management) are obliged to interact with Revenue electronically (for RCT purposes) so all School Boards of Management should be registered for the Revenue On-line Service (ROS). School Boards of Management not currently registered should do so as soon as possible. If assistance is required, School Boards of Management should contact the ROS Helpdesk at 1890 201 106 or email roshelp@revenue.ie . School Boards of Management engaging a tax advisor/agent/bookkeeper to prepare their RCT returns should ensure that their tax advisor/agent/bookkeeper is registered for ROS.
  • Notifying a relevant contract to Revenue: When a principal (School Boards of Management) enters into a relevant contract with a subcontractor, he/she will be obliged to provide Revenue with details of the contract online, including a declaration that the contract being entered into is not a contract of employment. This process is known as “Contract Notification” in the new system. Revenue will acknowledge the contract notification and advise the principal (School Boards of Management) of the current rate of RCT applicable to the subcontractor.
  • Notifying a relevant payment to Revenue: Immediately before making a payment under a contract, the principal (School Boards of Management) should notify Revenue (through ROS) of his or her intention to make the payment and state the gross amount to be paid. This process is known as “Payment Notification” in the new system. Confirmation of the RCT rate to apply to the payment: Upon receipt of the payment notification, Revenue will issue an acknowledgement to the principal’s (School Boards of Management) ROS inbox. This acknowledgement will include the “Deduction Authorisation“, which will specify the rate of tax (RCT) and the amount of tax to be deducted from the payment. A copy or details of the Deduction Authorisation should be given to the subcontractor (where tax has been deducted
  • Filing the periodic return and making the payment of RCT deducted: A pre-populated “Deduction Summary” (DS) will be available on ROS shortly after the end of the return period (via the “Online Return” link on the “My Services” page). The principal (School Boards of Management) should check the DS to ensure the information is correct and make any amendments required prior to filing the return. The principal (School Boards of Management) should arrange for payment of the RCT deducted on or before the due date.

2. What are the Tax Clearance Procedures?

Information on the revised procedures for Tax Clearance in relation to Public Service contracts is available on . The current arrangements in relation to Tax Clearance Procedures for Public Service Contracts, Grants, Subsidies and similar type payments are being revised.

3. When I engage a subcontractor on a relevant contract what am I required to do?

Before entering into a relevant contract with a subcontractor, you are obliged to satisfy yourself that the proposed contract is NOT a contract of employment. You are also required to satisfy yourself as to the identity of the subcontractor.

Once the above requirements have been met, you are obliged to provide Revenue with details of the subcontractor (name and tax reference number) and contract (location, start/end dates, estimated contract value, etc) through ROS. You should provide the “official” name of the subcontractor – this is the name that is recorded on Revenue’s record. The subcontractor’s “official” name would be included in correspondence or other documentation (e.g. a relevant payments card) received from Revenue concerning the subcontractor. This process is known as “Contract Notification“.

4. Are guidelines available on notifying contracts?

Revenue has provided guidance on how to notify a contract (PDF,118 KB), what information is required (PDF, 91KB) from the principal (School Boards of Management) and how to ascertain whether it is a labour only contract (PDF,17 KB). In addition, instructional videos are available on the Contract Notification page.

5. If the subcontractor has received a Notice of Exclusion from the RCT 1 process (and the expiry date has not passed) do I still have to notify the contract to Revenue?

Yes, all contracts should be notified to Revenue. There are no exceptions. From 2012 onwards, the paper Form RCT 1 is no longer required to be completed by School Boards of Management and subcontractors. As a result, Notices of Exclusion from the RCT 1 process are no longer valid.

6. What happens if I don’t have a tax reference number for a subcontractor?

If you have no tax reference number for the subcontractor when you notify the contract, you will be asked to provide additional details for the subcontractor (name, address, phone number, date of birth, etc) so that Revenue can contact the subcontractor directly. You will also be obliged to advise the unknown subcontractor in writing within seven days of notifying the contract or before you pay the subcontractor (whichever is earlier) that:

  • Revenue were unable to verify the subcontractor’s identity
  • RCT at 35% will apply to payments to the subcontractor
  • The subcontractor should contact Revenue with a view to clarifying his/her identity

7. Is “Estimated Contract Value” inclusive or exclusive of Value Added Tax?

If the VAT Reverse Charge applies to the payments on the contract, then the VAT exclusive amount should be input as part of the Contract Notification (i.e. you do not include VAT in the payment to the subcontractor). However if the VAT Reverse Charge does not apply (e.g. haulage, meat processing or forestry operations) then the VAT inclusive amount should be input.

8. I have multiple contracts with the same subcontractor. Do I have to notify each contract separately?

Yes. You will be required to notify each contract separately in the new system unless they are considered to be part of an ongoing contract with the subcontractor (see next question). Each contract will be given a unique contract reference number and payment notifications should be made to Revenue under the relevant contract reference number.

9. Am I obliged to notify Revenue every time I make a payment to a subcontractor?

Yes. In the new system a principal (School Boards of Management) will not be authorised to deduct tax from a payment until he/she has notified Revenue of the payment and received authorisation to make the deduction. Failure to properly notify Revenue will leave the principal (School Boards of Management) liable for the RCT.

10. What procedure should I follow when making a payment to a subcontractor?

Immediately before making a payment to a subcontractor you should advise Revenue online of the amount of the gross payment to be made. This process is known as “Payment Notification“. You should select the subcontractor from the list of contracts you have already notified to Revenue. You will not be able to complete a Payment Notification on a contract unless the contract has already been notified to Revenue.

11. How will I know what rate of RCT to deduct?

Revenue will issue an acknowledgement to you in response to the Payment Notification. This acknowledgement will include the “Deduction Authorisation” which will set out the gross amount, net amount, the rate of tax (RCT) and the amount of tax to be deducted from the payment. This Deduction Authorisation (DA) relates specifically to the payment notified. You should provide a copy or details of the DA to the subcontractor (where tax has been deducted). You can provide a copy of the DA in writing or in electronic format.

12. If I choose to give “details of the Deduction Authorisation” to the subcontractor (rather than an actual copy), what details should I provide?

You should provide the following to the subcontractor (in writing or in electronic format):

  • Name and tax reference number of the principal (School Boards of Management)
  • Name and tax reference number of the subcontractor
  • Gross amount of the payment including the amount of any RCT deducted
  • Amount of the RCT deducted
  • Rate at which RCT was deducted
  • Date of the payment
  • Unique ID number issued by Revenue on the related Deduction Authorisation

Deduction Summary / RCT Return

13. When will the Deduction Summary be available?

The pre-populated Deduction Summary is created by Revenue based on the payment notifications made by the principal (School Boards of Management) during the period covered by the return. It will be available on ROS shortly after the end of the return period, which can be monthly or quarterly (depends on the filing frequency of the principal (School Boards of Management)).

14. How can I access my Deduction Summary on ROS?

Guidance on accessing the Deduction Summary (DS) (PDF, 81 KB) is available on the website. To view the DS, go to the “My Services” page on ROS and:

  • Click Online Return
  • Select Tax Type: RCT and Return Type: RCT Return
  • Click next
  • Select the period (e.g. 01/02/2012 – 29/02/2012 for monthly filers) and click next

15. What should I do when I receive the Deduction Summary?

You should check the Deduction Summary (DS) to ensure that all payments made to subcontractors have been notified to Revenue and that the amounts notified were correct. Guidance on checking and amending the Deduction Summary (PDF, 33 KB) is available on the website.

If the DS is correct, you do not have to file (submit) the return – it will be deemed by Revenue to have been filed on the due date. If the DS is not correct, you should make the necessary amendments online and file (submit) the return by the due date. Whether the return is filed by you or deemed filed, you should arrange for payment of the RCT deducted on or before the due date.

16. What is the due date for filing the return and paying the RCT to Revenue?

School Boards of Management required under the Mandatory eFiling Regulations to file returns and make payments electronically, have until 23rd day following the end of the return period to pay and file. School Boards of Management who decide to pay their RCT manually (e.g. by cheque) must pay and file their return by 14th day following the end of the return period.

17. Will I receive notification from Revenue when the return is filed by me or deemed filed?

If you file the return you will receive an acknowledgement from Revenue (in your ROS inbox). However, if you choose not to file your return (Revenue deems the return to have been filed), you will not receive an acknowledgement in your ROS inbox.

18. Revenue has advised that any amendments should be made to the relevant payments listed on the Deduction Summary and it should be filed on or before the due date. Can I amend these relevant payment details after the due date for the Return?

No, you cannot amend line items (payment details) on the return, once it has been filed or deemed filed. You can only add unreported payments to the return. Where amendments need to be made to line items after the return has been filed or deemed filed (if not filed by the due date), you should contact your local Revenue District (PDF, 25 KB). A surcharge of €100 will also apply to any amendments made after the due date for the return, and you may also be liable for interest and penalties. Guidance on checking and amending the Deduction Summary (PDF, 33 KB) is available on the website.

If you have a query about the new system that is not addressed in these FAQs, please email us at: eRCTInfo@revenue.ie

For further information on the new RCT system please see: Electronic RCT System

Following a number of representations from representatives of fee charging schools, the FSSU sought clarification from the legal department of the Revenue Commissioners as to whether or not fee paying schools are comprehended by RCT regulations. Below is the reply from Revenue which clearly states their view that RCT regulations apply to “any board established by or under statute” which has been in legislation since 1976. Therefore RCT regulations apply to all boards of management which are corporate bodies under the 1998 Education Act.


Revenue Commissioners Legal Opinion

The reference to “any board established by or under statue” has been included in the RCT legislation since 1976.

The reference to “any board or body established by or under royal charter and funded wholly or mainly out of moneys provided by the Oireachtas” was introduced by Finance Act 2007.

This extended the obligation to operate RCT to any board or body that was established prior to the foundation of the State and their structures and activities are set out in Royal Charters granted by various British monarchs. The reference to moneys provided by the Oireachtas was in relation to boards established by or under Royal Charter only, it was never intended to apply to any board or body established under statute as it was not included in the RCT legislation in 1976.

As Boards of Management (BOMs) are corporate bodies under the 1998 Education Act, such boards came within the scope of RCT from commencement of the 1998 Act.

July 1st 2012