Revenue could collect nearly \u20ac27m in taxes via gig economy rulingOpens in new window<\/a>\u00a0]<\/p>\nFar more common, he suggested, was the reclassification of family members from Class M, a zero PRSI rate intended to cover, among other things, family members employed in work associated with the family home, to Class A. These cases, he said, generated the vast majority of the \u20ac3.4 million figure.<\/p>\n
\u201cI\u2019d say the biggest issue we have, and it definitely doesn\u2019t get a lot of attention, is Class M. Class M is a zero rated PRSI rate and is meant to be used in cases of what\u2019s known as subsidiary employment or prescribed relatives in family businesses. <\/p>\n
\u201cThe law says that if you\u2019re a prescribed relative of somebody who is self-employed \u2013 a sibling, child, a parent or a grandparent \u2013 if you\u2019re a prescribed relative and you\u2019re working in a family business associated with the home, you do not pay social insurance. <\/p>\n
\u201cHowever, if you\u2019re a relative, and, for example, you\u2019re working as part of your father\u2019s law firm, or you\u2019re working as part of your father\u2019s\u2019 pub, that\u2019s not associated with the home and you should be paying Class S insurance. <\/p>\n
\u201cAnd what we find is that the highest level of misclassification is people on Class M, who should be Class A.<\/p>\n
\u201cIn terms of what the ESIU did, we looked at 3,262 workers. There were 25 of those reclassified from Class S to class A. Most of the others were people in Class M. So they\u2019re the cases that we found most fruitful.\u201d<\/p>\n
Niall Cody, chairman of the Revenue Commissioners, told the committee that all of the expected sectors had been represented among employers who had availed of the recent voluntary disclosure scheme that allowed employers who, acting in good faith before the Supreme Court ruling in the Karshan case which set out a five stage framework for establishing whether somebody should be considered self-employed or not, had wrongly classed some employees as contractors.<\/p>\n
\u201cThere\u2019s a range of sectors affected, sectors we would have expected, and probably a couple of sectors that we probably didn\u2019t expect, like certainly the voluntary groups,\u201d he said.<\/p>\n
\u201cThere were a lot of representations made in January from the voluntary sector about the challenges that this will present to them and the help they would need to fund it.\u201d<\/p>\n
He said the expectation was that many of the organisations, which included some sports clubs or organisations, would have to go to the Government departments that fund them in the hope of securing the extra money involved.<\/p>\n
In all, some 6,600 employees were identified as having misclassified as self-employed with \u20ac26.7 million identified as due in taxes.<\/p>\n","protected":false},"excerpt":{"rendered":"The bulk of the money recovered by the Department of Social Protection\u2019s Employment Status Investigation Unit (ESIU) last…\n","protected":false},"author":2,"featured_media":333361,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[72,61,60,11522],"class_list":["post-333360","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-business","tag-ie","tag-ireland","tag-revenue-commissioners"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/333360","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/comments?post=333360"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/333360\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media\/333361"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media?parent=333360"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/categories?post=333360"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/tags?post=333360"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}