Arthur Morgan (Louth, Sinn Fein)
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Question 320: To ask the Minister for Finance the enforcement procedures which exist in respect of the obligation on employers to issue a P45 to employees when they leave a job; if his attention has been drawn to a growing number of instances where employers have refused to issue a P45 to employees when they leave their employment; and if he will make a statement on the matter. [15292/06]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I am informed by the Revenue Commissioners that a form P45 is required, under PAYE regulations, to be given by an employer to an employee on cessation of employment. This form certifies the employee's pay, tax and PRSI contributions from the start of the tax year to the date of cessation and also certifies that the deductions have been made in accordance with the instructions given by Revenue. If an employee does not get a form P45 when leaving, he or she should ask the employer for one and repeat the request if necessary. If the employer still fails to give the P45, the employee should notify their local Revenue office in writing that they have failed, after several attempts, to get a P45 and the matter will be followed up quickly by Revenue with the employer. Without a P45, an unemployed person will be unable to claim social welfare benefits or a refund of tax during unemployment.

The Revenue Commissioners state that they are aware of an increase in the number of instances where employers have failed to issue P45s to employees when they leave their employment. However, I understand that most such cases are resolved quickly following intervention by Revenue. Where the problem persists, an employer who fails to issue a P45 may be subject to civil penalties under section 987 of the Taxes Consolidation Act 1997 for breach of the PAYE regulations, or may be charged with a Revenue offence under section 1078 of the same Act for failing, without reasonable excuse, to issue a required certificate or notification.