Peter Cleere (Carlow-Kilkenny, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

27. To ask the Minister for Finance if permission will be given to organisations (details supplied) and other funded bodies by the Revenue Commissioners for a stay on the disclosures required by 30 January 2026 to 30 June 2026; and if he will make a statement on the matter. [6672/26]

Simon Harris (Wicklow, Fine Gael)
Link to this: Individually | In context | Oireachtas source

Following the Supreme Court judgement in October 2023 in The Revenue Commissioners v Karshan (Midlands) Ltd t/a Domino’s Pizza, Revenue encouraged businesses to review their workforce model in light of the five-step framework outlined in the judgement, and to regularise their tax position. Subsequently, Revenue published detailed guidance in May 2024 in its Tax And Duty Manual Revenue Guidelines for Determining Employment Status for Taxation Purposes Part 05-01-30, available at www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-05/05-01-30.pdfv.

Revenue recognised that prior to the judgment in October 2023, some employers, acting in good faith, may have misclassified employees for tax purposes as persons engaged in contracts for services. It is in this context, in September 2025, Revenue announced a disclosure initiative aimed at employers who are potentially impacted by the Supreme Court judgment. This initiative incentivises such employers to make a disclosure in respect of 2024 and 2025, the years following the Supreme Court judgement, arising from bona-fide classification errors.

The disclosure initiative gives businesses that may have misclassified employees as contractors the chance to make a disclosure in respect of payroll tax errors in 2024 and 2025. Detailed guidance on this disclosure initiative is set out in Tax and Duty Manual ‘Settlement arrangement arising from Revenue v Karshan (Midlands) Ltd. trading as Domino’s Pizza’ which is available at www.revenue.ie/en/tax-professionals/tdm/compliance/audit-and-other-compliance-interventions/karshan-settlement-guidance/karshan-disclosure-opportunity-guidance.pdf.

To avail of the settlement terms outlined, all disclosures should be submitted to Revenue no later than the 30 January 2026. Employers must either pay the liability to Income Tax, USC and PRSI (Employee and Employer) in full via REVPAY or request, at the time they submit the disclosure (i.e. by 30 January 2026), to enter a Phased Payment Arrangement for the liability.

Revenue is aware that some businesses that are reviewing the status of employees or contractors are concerned that they will not have fully completed the review by the 30 January deadline.

Revenue issued a Press Release on 15 January 2026, clarified to those businesses who are preparing disclosures that if, after the submission deadline, there is a need to amend the details of a disclosure which has already been submitted, Revenue will accept those amendments in accordance with the Code of Practice for Revenue Compliance Interventions, provided that the original disclosure was made on a best-efforts basis, the amendments do not arise from careless or deliberate behaviour, the amendments are not material in nature, the declared liability is paid or a PPA is requested, and critically, employees who work for the business are properly classified and PAYE/PRSI is being operated through the PAYE system for 2026.

In such cases, Revenue will continue to regard the disclosure as qualifying.

The disclosure opportunity is available to all employers in the State equally.