David Cullinane (Waterford, Sinn Fein)
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98. To ask the Minister for Social Protection the status of his Department's investigation into disguised employment; and if he will make a statement on the matter. [3612/17]

Leo Varadkar (Dublin West, Fine Gael)
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‘Disguised employment’ is a broad term which refers to the incorrect classification of a worker for PRSI purposes, which in turn can affect their entitlement to social insurance benefits. It can also affect the tax liability of a worker. Examples of disguised employment include the use of intermediary type structures and various forms of ‘dependent’ self-employment, e.g. where there is limited entrepreneurial risk and a degree of control.

An interdepartmental working group, comprising officials from the Department of Social Protection, Department of Finance and the Revenue Commissioners, has been examining the issue of disguised employment.

To inform the work of the group, a public consultation on the use of intermediary type employment structures and self-employment arrangements, and its impact on tax and PRSI, was undertaken in 2016. The consultation received 23 submissions from interested parties on possible measures to address the potential loss to the Exchequer under arrangements (i) where an individual, who would otherwise be an employee, establishes a company to provide his or her services, and (ii) where an individual, who is dependent on, and under the control of, a single employer in the same manner as an employee, is classified as self-employed.

A report on the consultation is currently being been finalised by the working group, which I and my colleague the Minister for Finance will consider in due course.

I hope this clarifies the matter for the Deputy.