Simon Harris (Wicklow, Fine Gael)
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I thank the Deputy for his question.

As the Deputy will know, Recommendation 48 of the Cost of Business Advisory Forum relates to Enhanced Reporting Requirements (‘ERR’). It recommends the penalty for non-compliance be reduced and a more graduated approach to errors be implemented.

ERR was introduced in 2024 and requires employers to report details of certain payments / benefits made to employees without the deduction of tax.

The categories required to be reported are:

• Travel & Subsistence;
• Small benefit exemption; and
• Remote Working Daily Allowance

The ERR legislation provides for the application of fixed penalties in certain circumstances, for example a €4,000 penalty for each instance in which a return or notification under ERR has not been made.

It is worth noting that Revenue adopted a “service for compliance” approach for the first 12 months after ERR was introduced, meaning no compliance interventions were carried out, and no penalties were applied where employers were unable to meet their obligations straight away.

The intention of the fixed penalty is to act as a deterrent to employers who do not file ERR returns. Revenue do not seek to penalise employers who are meeting their reporting obligations and have made a genuine error or correction when filing their ERR returns. Revenue is a statutorily independent body and the application of penalties relating to ERR is a matter for Revenue. I am however advised by Revenue that, to date, no penalties have been imposed in relation to ERR non-compliance.

The Report of the Cost of Business Advisory Forum is a relatively recent publication, and my officials are keeping the recommendations under review.