Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
Link to this: Individually | In context | Oireachtas source

96. To ask the Minister for Finance the ongoing efforts being made by his Department and the Revenue Commissioners to ensure full compliance by film production companies with the conditions attached to receipt of section 481 film tax relief particularly following a recent ruling by the scope section that one of the regular recipients of section 481 over many years was found to have wrongly classified an employee as self-employed and in circumstances in which many workers in the industry claim this practice is widespread; and if he will make a statement on the matter. [17197/21]

Paul Murphy (Dublin South West, RISE)
Link to this: Individually | In context | Oireachtas source

380. To ask the Minister for Finance the ongoing efforts being made by his Department and the Revenue Commissioners to ensure full compliance by film production companies with the conditions attached to receipt of section 481 film tax relief particularly following a recent ruling by the scope section that one of the regular recipients of section 481 over many years was found to have wrongly classified an employee as self-employed and in circumstances in which many workers in the industry claim this practice is widespread; and if he will make a statement on the matter. [17199/21]

Paschal Donohoe (Dublin Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I propose to take Questions Nos. 96 and 380 together.

The section 481 tax credit is intended to act as a stimulus to the creation of an indigenous film industry in the State, creating quality employment opportunities and supporting the expression of the Irish culture. Prior to 2015 the scheme was an investor-based relief which provided tax relief to individuals investing in the film industry. It is my understanding that the Deputies may be referring to a SCOPE ruling relevant to the time when the tax relief was claimed by investors, rather than the film production companies. The scheme was amended as part of Finance Act 2015 and now operates as a corporation tax credit which provides direct support to producer companies.

I am aware that there have been reports of industrial relations concerns in the industry and the Deputies will be aware that I have taken steps in recent Finance Acts to address these issues. Finance Act 2018 amended the section 481 certification process to provide that the Minister for Tourism, Culture, Arts, Gaeltacht, Sport and Media, after considering an application and applying a set of tests, may issue a Cultural certificate to a producer company stating that a film is qualifying film for the purpose of the credit. One of these tests relates to employment on the qualifying film. Applicants must complete an “Undertaking in respect of quality employment”. This undertaking commits applicants to compliance with all relevant employment legislation in relation to the film being certified and it is also requirement to provide information on any adverse decisions of the Workplace Relations Commission against the company or companies within the group.

The Film Regulations provide for the Minister for Tourism, Culture, Arts, Gaeltacht, Sport and Media to set conditions relating to employment when issuing a certificate for a qualifying film. Regulation 4 of the Film Regulations stipulates that these conditions are to be met by the producer company but also by the qualifying company (a designated activity company wholly owned by the producer company which exists solely for the purpose of making the one qualifying film). Should a producer company or qualifying company fail to adhere to a condition or obligation specified in a certificate, any credit claimed may be subject to recoupment by Revenue.

In relation to the clawback of the credit, I am advised that Revenue carries out a comprehensive programme of compliance operations each year across a broad range of economic sectors, including the film industry. Many of the operations are carried out on a multi-agency basis, which can include officials from the Department of Social Protection (DSP) and the Workplace Relations Commission. The primary role of these joint investigation units, JIUs, is to detect non-compliance with tax and duty obligations, which includes non-operation of the PAYE system on foot of bogus self-employment.

Additionally, I am informed that Revenue are members of the Employment Status Group. As members of this group, Revenue are assisting DSP in updating the Code for Determining Employment or Self-employment. It is envisaged that the new code will be published by Q3 2021.