I am advised that Revenue is precluded under Section 851A of the Taxes Consolidation Act 1997 from commenting on the tax affairs of an individual, person, organisation or other legal entity. Revenue is, therefore, unable to provide information on the tax affairs of the organisation the Deputy’s question refers to or provide information on any tax settlements that might have been entered into by that organisation with Revenue.
As you are aware from my previous reply to you under Parliamentary Question No. 32 of 28 February 2024, Revenue’s role in respect of the misclassification of employment is to determine the employment status of an individual for income tax purposes. Responsibility for PRSI classification rests with the Department of Social Protection and matters relating to workers’ rights fall within the remit of the Workplace Relations Commission, which operates under the aegis of the Department of Enterprise, Trade and Employment.
I am advised that Revenue has always sought to address instances of bogus self-employment. Revenue’s determination to tackle misclassification of employment from an income tax perspective is borne out by the recent Supreme Court judgement in the “Karshan” case. Revenue has publicly encouraged all businesses which currently engages contractors, sub-contractors, or other workers on a self-employment basis (i.e. where that worker is not treated as an employee of the business for income tax purposes) to review the nature of any such arrangement(s) in light of that judgment and to consider any implications the judgment may have for the business in terms of applying the appropriate income tax treatment to any such individuals.
Except in the limited circumstances in which an employee holds a PAYE Exclusion Order, it is an employer’s duty and responsibility to deduct and submit PAYE, PRSI and USC from its employees in respect of that employment income.
On 28 June 2023, Dáil Éireann passed a motion permitting the Committee of Public Accounts (PAC) to examine RTÉ’s expenditure, and commercial arrangements entered into by the broadcaster and its presenters from 2017 to date, which have impacted on, and relate to, the expenditure of public moneys. On 5 March 2024, the Committee of Public Accounts published its final report on this investigation entitled “Examination of the appropriation of public moneys to RTÉ, and its expenditure of same”. Section 6 of this report discusses matters of current expenditure, including matters arising from the report prepared by the law firm Eversheds Sutherlands on misclassification of employment within RTÉ. Section 6.5 of the PAC’s report states:
“The Department of Social Protection’s Scope investigation unit launched a separate investigation, reviewing PRSI arrangements at RTÉ over a period of time that could date back to the 1980s. The investigation is looking at a total of 695 individuals, of which 149 had been reported on at the time of the Committee’s meeting on 12 October 2023. RTÉ Director General Kevin Bakhurst told the Committee at that meeting that the broadcaster had set aside a figure of less than €20 million as a potential liability to the Department”.
Recommendations 15 and 16 of the PAC report are related to this issue. Recommendation 15 states:
“The Committee recommends that RTÉ provides the Committee with an update in June 2024 with regard to the investigation by the Scope section at the Department of Social Protection into the historic PRSI classification of workers at RTÉ, and any revisions to the estimated liability to the Department, including any settlements made to it.”
Recommendation 16 states:
“The Committee recommends that RTÉ keeps it informed on a quarterly basis regarding any further settlements with Revenue, in relation to the classification of workers at the broadcaster or any moneys paid to former members of staff.”
As noted above, the details of individual cases or settlements cannot be provided by Revenue under a response to a Parliamentary Question due to legislative restrictions on disclosing confidential taxpayer information. Under the above PAC recommendation however, information will be provided by RTÉ to the Public Accounts Committee on a quarterly basis in respect of any settlements with Revenue in relation to the classification of workers.
