Paschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

As the tax credit for digital games is a cultural relief, in order to avail of the credit a digital games development company must first apply to the Minister for Tourism, Culture, Arts, Gaeltacht, Sport and Media for a cultural certificate. As part of the certification process, a digital games development company will be required to complete an undertaking in respect of quality employment in order to qualify for the relief. This is similar to the requirements in place under section 481. The undertaking commits applicants to compliance with all relevant employment legislation. It is crucial that employee rights are upheld in all industries. The inclusion of this provision reinforces the importance of adhering to employment legislation in the digital gaming sector. Should a digital games development company fail to adhere to a condition or obligation specified in the undertaking, the conditions of certification will not have been met, which means that any credit claimed pursuant to an interim or final certificate may be subject to recoupment by Revenue and an application for a final certificate may be refused.

The issue of bogus self-employment is relevant to all sectors and, as such, needs to be treated in that way. I am advised that Revenue carries out a comprehensive programme of compliance operation each year across a broad range of economic sectors, including the digital games development industry. Many of the operations are carried out on a multi-agency basis, which can include officials from the Department of Social Protection and the WRC. The primary role of these joint investigation units is to detect non-compliance with tax and duty obligations, which includes non-operation of the PAYE system on foot of bogus self-employment. This led Revenue, together with the Department of Social Protection and the WRC, to update the code of conduct for determining employment status in July 2021. The code aims to be to the benefit of employers, employees, independent contractors and those involved in the sector.

On the particular point regarding the representative union, we have corresponded with it but have not met with its representatives. My officials are very much open to meeting them.