Wednesday, 27 November 2019
Department of Finance
Revenue Commissioners Enforcement Activity
I propose to take Questions Nos. 95 to 97, inclusive, together.
I am advised by Revenue that the construction sector continues to feature prominently in its overall compliance intervention activities and a comprehensive programme of site visits has operated, across both publicly funded and private developments, for several years. A key focus of these visits is the identification and correction of misclassified employments. To give an overview of the scale of activity, the following table sets out the numbers of sites visited, persons interviewed and numbers that were newly registered for tax or whose status was reclassified from sub-contractor to employee for the years 2016 to 2018.
|Year||Site Visits||Persons |
|Reclassifications||New PAYE |
Regarding the Deputy’s request for a breakdown of reclassifications between public and privately funded sites, I am advised by Revenue that while it operates its inspection programmes across all areas of construction, it does not capture information on the funding models or tenders involved as this is not relevant to the employment status or tax treatment of the workers operating on site. For this reason, it is not possible to provide the Deputy with the information requested.
Revenue has also confirmed that it does not capture information on the ratio of reclassified employees versus overall numbers of employees or in regard to sub-contractors versus employees because this data quickly fluctuates throughout the life-cycle of site projects.
I am further advised that it has not been Revenue’s practice to develop estimates of PRSI foregone in these cases as the focus is on establishing the correct classification and tax and PRSI treatment for the individuals concerned. I can, however, confirm that during the three years 2016, 2017 and 2018, compliance interventions carried out in the construction sector generated a combined tax and PRSI yield of €54.7million, €60.2 million and €50.6 million respectively, representing a total yield of €165.5 million for those three years.
Finally, I am advised that site visits are generally conducted on an unannounced basis, particularly where Revenue believes there is a significant risk of employment misclassification.