Tax Code

Dáil Éireann Debate, Wednesday - 9 May 2012

Wednesday, 9 May 2012

Questions (45)

Catherine Murphy

Question:

46 Deputy Catherine Murphy asked the Minister for Finance if his attention has been drawn to any arrangements within semi-State companies whereby individual employees are paid for their services, either for regular contractual duties, extraordinarily contractual duties or both, through the practice of incorporating themselves and having that remuneration paid to their company; if he will outline the tax implications of such arrangements; if it facilitates the avoidance of payment of PAYE, PRSI and or other taxation at source; and if he will make a statement on the matter. [23103/12]

Written answers

Minister for Finance (Deputy Michael Noonan)

The engagement and remuneration of staff of semi-State companies is a matter for those companies. I am informed by the Revenue Commissioners that it is long established in tax legislation that the remuneration arising from employments under any public institution, any public foundation or under any public corporation or local authority is fully chargeable to income tax and fully within the scope of deductions at source under the PAYE and Universal Social Charge systems with the necessary PRSI regime applying.

On a wider note, I am further informed that the Chairman of the Revenue Commissioners has previously written to all Secretaries General of Government Departments as regards a range of tax issues including the need to ensure that individuals engaged by such Departments or engaged by State bodies/agencies under the aegis of those Departments are correctly classified for tax purposes and that the correct tax, etc. is deducted from emoluments paid. I understand that the Chairman will shortly be writing to Secretaries General again as regard the obligations of their Departments (and of State bodies/agencies under their aegis) to be fully tax compliant.

Questions Nos. 47 and 48 answered with Question No. 39.