asked the Minister for Social Welfare if, in relation to the 26 cases involving employers and social welfare fraud sent to the Chief State Solicitor in the five months to the end of May, 1988, he will give the number of employees involved; and the total amount of benefit and/or revenue involved.
Written Answers. - Social Welfare Fraud.
22.
Twenty-six cases have been referred to the Chief State Solicitor to have legal proceedings instituted against employers for breaches of provisions of the Social Welfare Acts and Regulations. The offences involved are: failure by the employer to furnish information requested by an inspector; failure to maintain prescribed records relating to employees; failure to produce records relating to employees, on request from an inspector; recording and furnishing information relating to employees which was false; concealing information concerning an employee's employment; delaying and obstructing inspectors in the performance of their duties.
Because of the attitudes of the employers concerned and their failure to furnish correct or any information in relation to their employees, in respect of whom information was sought by the inspectors, it is not possible at this stage to furnish the information sought by the Deputy, before the cases are finalised.
One of the reasons for the prosecutions is to enforce compliance by the employers and to enable the number of employees and their social insurance records to be properly established. It is known at this stage that at least 47 employees are involved and that at a minimum there are some £36,000 arrears of PRSI and that benefit amounting to some £2,000 may have been overpaid. It is likely that the totals to be eventually established will be greatly in excess of these figures.
A programme of survey and inspection of employers is an ongoing feature of the work of the Inspection Branch of my Department. In the period January to May 1988 inspections were carried out in the premises of 1,436 employers and arrears of PRSI amounting to £2.14m have been reported to the Revenue Commissioners.
The joint investigation unit, consisting of three social welfare and two revenue inspectors, which is in operation within the Dublin General Tax District, are carrying out inspections on specific sectors and enterprises. A review of the timber industry in the Wicklow area which covered 19 main contractors and 129 sub-contractors has been completed. A total of 45 cases of persons working and claiming social welfare payments were detected and 52 of the sub-contractors have been referred for further investigation of their tax liability. Only two of the sub-contractors were found to be registered with the Revenue Commissioners.
Sixty-nine security firms in Dublin have also been investigated and, of these, 31 have shown some deficiency in relation to tax and social welfare matters. To date this year, £127,000.00 in tax and PRSI was collected.
An investigation into the hotel industry in Dublin commenced in May 1988 and is continuing. To date 26 establishments have been investigated and £73,000.00 in unpaid tax and PRSI collected.