Mr. Seán Ó Foghlú:

Primarily this was an issue of interpretation and the Revenue Commissioners did not put a penalty in place because they recognised we were not seeking not to pay. It arose in two areas, one of which was home tutor payments which were made directly by the Department to home tutors. They were subject to pay as you earn, PAYE, pay-related social insurance, PRSI, and universal social charge, USC, but the Department had been making the payments on a gross basis with the tutors required to make the returns.

The second one related to board and committee members. Payments were made by the Department to such individuals on a self-employed basis and subject to a deduction of professional services withholding tax. However, they should have been treated as office holders and subject to PAYE, PRSI and USC. There were differences in interpretation which we worked through with Revenue. We obviously had to repay the money to it, but it did not impose a penalty.