The Revenue Commissioners have processed gross tax adjustments totalling €26.7 million arising from cases where workers were incorrectly treated as self-employed rather than employees.
Revenue said 280 voluntary disclosures were made, covering more than 6,600 employees. The disclosures relate to situations where some businesses classified staff as self-employed contractors when, in practice, the individuals should have been on payroll as employees.
Revenue Chairperson Mr Niall Cody is scheduled to appear before the Oireachtas Public Accounts Committee on today, where he is expected to outline the findings and the compliance activity behind them.
Mr Cody is also due to highlight that, while misclassification has long been a known compliance risk, the Supreme Court decision in Revenue Commissioners V Karshan, in October 2023 has significantly altered the operating environment for employers. The case, commonly referred to as the Domino’s Pizza delivery drivers judgment, upheld Revenue’s position that the workers involved were employees rather than independent contractors.
The ruling has been widely viewed as a landmark moment in addressing bogus self-employment, where individuals carry out work comparable to employees but without access to standard employment protections and benefits such as paid leave, sick pay and pension contributions. Historically, the issue has been particularly associated with sectors including construction and media.
Leave a Reply