Mr. Niall Cody:

I have to be very careful in that I cannot speak about a small number of people or businesses in any area. I must respect taxpayer confidentiality. I must speak in generalities. The Deputy is absolutely right. Companies are set up, sometimes by high earners and sometimes by low earners, for different reasons in different cases. The use of intermediary structures can give rise to potential losses under a number of headings. There are different outcomes for employers' and employees' PRSI. I refer also to indefinite deferral of the payment of part or all of the remuneration with a consequent deferral of payment of the associated tax or USC. There are also issues around the payment of unwarranted tax-free expenses. Generally, if an employee is getting expenses from a company, the company has a vested interest in ensuring that everything is proper there. Different pension opportunities and contributions can also be arranged. Those are some of the issues that arose in our work on contractors.