Michael McGrath (Cork South Central, Fianna Fail)
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To ask the Minister for Finance his views on the criteria used by Revenue to determine if a person engaged in work for one organisation is an employee of that organisation or qualifies legitimately to be a contractor. [15444/13]

Michael Noonan (Limerick City, Fine Gael)
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As the Deputy may be aware, there is no single test that can be used to determine the status (employed or self-employed) of individuals. Simply because an individual is described as a “contractor” does not necessarily mean that such individual is a self-employed contractor.

Depending on the facts and circumstances of a case, an individual may be a full-time employee, a part-time employee, a temporary employee, a casual employee or, indeed, may be self-employed.

The question of whether an individual is engaged under either a contract of service (i.e. an employee) or a contract for services (i.e. self-employed) is a question of fact and of general law. Regardless of how the parties to an engagement may describe themselves, all the possible factors (including written, oral and implied details) that bear on the relationship between the parties must be examined, given their proper weight and a decision made on their overall effect. To try to provide some clarity as to whether an individual is employed or self-employed, the Employment Status Group (set up under the Programme for Prosperity and Fairness) published a Code of Practice for determining Employment or Self-employment status of Individuals ( updated in June 2010).

My officials inform me that this Code of Practice is not solely a Revenue document but was compiled in conjunction with the Department of Enterprise, Trade and Innovation, the National Employment Rights Authority, the Department of Social Protection, the Small Firms Association, the Construction Industry Federation, the Irish Congress of Trade Unions, the Irish Business and Employers Confederation and my Department. Of course, at the end of the day, the Code of Practice is for guidance only and the status (employed or self-employed) of an individual in relation to an engagement may, in some instances, have to be determined by the Courts.

The purpose of the Code of Practice “is to eliminate misconceptions and provide clarity ”. I am of the view that it is of great assistance in the determination processes employed by the State.

Seán Fleming (Laois-Offaly, Fianna Fail)
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To ask the Minister for Finance the dates on which the increase in deposit interest retention tax became effective in respect of changes in the Budget announced in December 2011 and December 2012; and if he will make a statement on the matter. [15453/13]

Michael Noonan (Limerick City, Fine Gael)
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The increase in the rates of Deposit Interest Retention Tax (DIRT) arising from Budget changes announced in December 2011 and December 2012 took effect in respect of interest paid or credited on or after 1 January 2012 and 1 January 2013 respectively. Accordingly, the increase in the standard DIRT rate from 27% to 30% and in the higher DIRT rate from 30% to 33%, announced in December 2011, applied to deposit interest that was paid or credited to an account on or after 1 January 2012. Similarly, the increase in the standard DIRT rate from 30% to 33% and in the higher DIRT rates from 33% to 36%, which was announced in December 2012, applied to deposit interest that was paid or credited to an account on or after 1 January 2013.

I am advised by the Revenue Commissioners that the rate of DIRT that is applicable to a payment or crediting of deposit interest is the rate in operation on the date the deposit interest is paid or credited to the account, irrespective of the fact that part of that interest may have accrued before the date the rate was changed. This means there is no apportionment of the interest between the amount accrued before the date of the rate change and the amount due after that date. The new rate is applied to all of the interest paid on or after the date of the rate change.

There are two rates of DIRT. The most common rate is the standard rate, which is applied where the interest is payable annually or more frequently than annually. In the case of interest that is payable less frequently than annually or where the amount of the interest cannot be calculated until maturity of the investment, the rate to be applied is the standard rate plus 3 per cent, as shown above.