Oireachtas Joint and Select Committees

Tuesday, 16 November 2021

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach

Finance Bill 2021: Committee Stage

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael)
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I appreciate the Deputies' concerns. First, the document and code of practice agreed by the three different Government bodies does provide a comprehensive response to the issue that has been raised. Second, I note in the letter that was shared with me as part of the correspondence in anticipation of this debate that the Revenue Commissioners have referred to the Revenue compliance interventions that are always open to them as they look at being satisfied that tax law is being implemented as they and the Oireachtas intend. Third, Revenue has a dedicated division that now looks at the shadow economy and includes within that issues with relation to the classification of employment contracts. The Department of Social Protection also now has a dedicated unit which looks at the misclassification of employment contracts. In Revenue's letter on this matter, it concludes by noting the power available to it to initiate compliance interventions, and we know what that means. It has acknowledged that in the context of aviation, for example, which is what prompted Deputy Nash to raise this important matter, that independent pilot contractor companies are included in Revenue's risk-based selection approach for compliance interventions.

I acknowledge it is an important matter but I hope that the initiative taken between the three State bodies and the work Revenue has indicated here will provide a strong response back to this important issue.