Part 18 of the Principal Act is amended -

(a) in section 530(1) by inserting the following definition:

"'unreported payment notification' means a notification to the Revenue Commissioners of a relevant payment which has not been made in accordance with section 530C and where a deduction authorisation has not been issued in accordance with section 530D;",

and

(b) in section 530F -

(i) by substituting the following for subsection (2):

"(2) A principal to whom section 530A applies who makes a relevant payment to a subcontractor in circumstances other than those referred to in subsection (1) shall, without prejudice to section 1078, be liable to a penalty of -

(a) 35 per cent of the relevant payment, where the person to whom the relevant payment was made was a subcontractor who has not had a determination made by the Revenue Commissioners under section 530I,

(b) 20 per cent of the relevant payment, where the person to whom the relevant payment was made was a subcontractor who has had a determination made by the Revenue Commissioners under section 530I and where neither section 530G nor section 530H applies to the subcontractor concerned,

(c) 10 per cent of the relevant payment, where the person to whom the relevant payment was made was a subcontractor to whom section 530H applies, and