The phrase 'bogus self-employment' is used to describe a scenario where an individual who is an employee is described erroneously as being self-employed. I am advised by the Revenue Commissioners that the question as to whether an individual is engaged under either a contract of service [i.e. an employee] or a contract for service [i.e. self-employed] is a question of fact and of general law. Regardless of how the parties may describe themselves, all the possible factors (including written, oral and implied details) that bear on the relationship between the parties must be examined in order to determine whether the relationship is one of employment or self-employment.
The Code of Practice for Determining Employment or Self-Employment Status of Individuals was compiled in 2007 with the assistance of the Irish Congress of Trade Unions, the Irish Business Employers Confederation, the Construction Industry Federation, the Small Firms Association, the Department of Jobs, Enterprise and Innovation, the Department of Social Protection, the Department of Finance, the National Employment Rights Authority and the Revenue Commissioners to provide some guidance as to whether an individual is engaged under either a contract of service or a contract for service
There is no offence in tax law relating specifically to an incorrect determination by an employer of the status employed or self-employed of an individual. As a consequence, the information sought by the Deputy relating to prosecutions and convictions does not arise.
I am advised by the Revenue Commissioners that in appropriate cases, when carrying out compliance interventions, they are mindful of the possibility of 'bogus self-employment' in any engagement between two parties. Where this is discovered, Revenue will seek to recover unpaid tax (including PAYE tax from employers who failed to operate the PAYE system on payments made) and interest on late payment and will pursue penalties, where warranted.
The yield (including PAYE/PRSI/USC, interest and penalties) for the period 2010 to date from interventions on all aspects of non-compliance by employers with the requirements of the PAYE system is set out in the Table. These figures do not include amounts sent to enforcement which are not separately identifiable.
|
Year
|
Amount €
|
|
2010
|
42m
|
|
2011
|
84m
|
|
2012
|
36m
|
|
2013
|
48m
|
|
2014
|
70m
|
|
2015 (to May 5th)
|
24m
|
