Denis Naughten (Roscommon-South Leitrim, Independent)
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93. To ask the Minister for Finance if he will intervene in a dispute between the Department of Education and Skills and the Revenue Commissioners on the tax treatment of home tutors; and if he will make a statement on the matter. [1696/16]

Michael Noonan (Limerick City, Fine Gael)
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I assume the Deputy is referring to the tax position of home tutors who, prior to September 2015, were paid by parents from grants paid to them by the Department of Education and Skills. I am advised by the Revenue Commissioners that there is no dispute between that Department and their Office on the tax treatment of the home-tutors. I am further advised by the Revenue Commissioners that, in the context of an audit over the last few years, it was determined that these home tutors are employed under a contract of service i.e. they are employees.  They are engaged by the parent(s) subject to satisfying criteria specified by the Department of Education and Skills.

As a consequence of the Revenue audit, the Department of Education and Skills agreed to operate the PAYE system on payments to the home tutors. This facilitates ease of administration, as the payments originate from the Department, and also avoids placing the obligation to register as employer, and administer the PAYE system, on each individual parent.