Joan Burton (Dublin West, Labour)
Link to this: Individually | In context | Oireachtas source

77. To ask the Minister for Finance the estimated loss of income to the Exchequer in respect of bogus self-employment which forces low income workers to register as self-employed; and if he will make a statement on the matter. [23619/17]

Michael Noonan (Limerick City, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I am informed by Revenue that, as there are no statistics available to it in respect of the number of individuals who would come within the terms of the Deputy’s question, it is not possible to provide the estimate sought. 

However, Revenue continually monitors developments to ensure that its compliance programmes, including joint initiatives with the Department of Social Protection, are tailored to meet evolving risk areas.  Revenue’s focus is on protecting the various income streams to the Exchequer across all tax heads, including VAT, customs duties, income tax, USC and corporation tax.  Revenue conducts a full range of interventions to combat tax evasion.  These include risk management interventions, Revenue Audits and Investigations, in addition to site visits.  This process is aided by Revenue’s Risk Evaluation Analysis and Profiling (“REAP”) system and other third party data sources.  

Of particular interest in the context of the Deputy’s question is that in 2016 Revenue carried out a comprehensive programme of site visits in the construction sector.  This involved 2,126 site visits during which 11,699 interviews were undertaken.  The programme resulted in 345 reclassifications from self-employed contractors to employees, 848 employee registrations and 84 employers registering to operate PAYE.  

In addition, in the course of a range of Revenue outdoor activities outside of the construction sector during 2016, Revenue activity resulted in 184 re-classifications from self-employed to employees and 1,192 employee registrations.

As the Deputy is aware, the consultation process on "the use of intermediary-type employment structures and self-employment arrangements and their impact on tax and PRSI" invited submissions from interested parties on possible measures to address the loss to the Exchequer that may arise under two sets of arrangements:

- where an individual, who would otherwise be an employee, establishes a company to provide his or her services, and

- 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 a self-employed individual.

I understand that officials from my Department and the Department of Social Protection, with technical support from Revenue, are currently in the final stages of completing a report on the consultation.  As soon as the report on this process reaches me, and my colleague the Minister for Social Protection, we will consider its contents and then I expect we will publish it.