Committee of Public Accounts to examine the 2022 Appropriation Account and related matters with the Revenue Commissioners

The Committee will also examine the following chapters from the C&AG’s 2022 Report:

Chapter 20 - Assessment and Collection of Local Property Tax

Chapter 21 - Revenues Tax Debt Warehousing Scheme

Chapter 22 - Corporation Tax Losses

During the afternoon session, beginning at 1.30pm, the Committee will consider correspondence and other business of the Committee.

The Committee has highlighted the classification of employment for contribution purposes and financial implications of the misclassification of workers as an area of interest.

Committee Cathaoirleach Deputy Brian Stanley said: “Some of the key Issues for Revenue are: tax collection, compliance intervention, delivering government supports such as the Governments Temporary Business Energy Support Scheme (TBESS), managing the Debt Warehousing Scheme, investment in a technology refresh programme and digitalisation strategy, new UK customs procedures in 2023 and the introduction of Residential Zoned Land Tax and Vacant Homes Tax. Given the number of restaurants and businesses who are reportedly closing this year due to changes in the Government’s warehoused tax debts scheme, this is a timely opportunity to hear from the Revenue Commissioners.”

“Revenue is responsible for the collection of Local Property Tax (LPT) on residential properties since 2013. The amount collected is relatively constant, averaging at around €470 million a year.

"LPT is administered on a self-assessment basis, with taxpayers required to declare the value of their property, in most cases within a value band, on a specific valuation day. Payment compliance rates for LPT are very high. The report by the C&AG makes a number of recommendations aimed at strengthening Revenue’s controls over LPT, including in relation to the claiming of exemptions and payment deferrals. The level of compliance, the number of arrears and the residential property database are among the topics we expect to discuss.”

“We will also resume our discussions regarding misclassification of workers. This may arise where a worker is classified as self-employed but has the characteristics of being an employee (or vice versa). The criteria for determining whether someone is employed or self-employed have been clarified following the recent Supreme Court judgement in the Karshan case (October 2023). The judgement sets out a five-step framework to assist the correct classification of individuals between employees and self-employed. In light of this decision, we expect to discuss what impact the Supreme Court ruling has had on Revenue’s ability to collect PRSI and whether Revenue has issued any guidance to Taxpayers in relation to the Supreme Court Ruling.”

“The Committee looks forward to examining these issues and related matters with representatives from Revenue.”

The meeting in Committee Room 3 can be viewed live here and on the Houses of the Oireachtas app, available for Apple and Android.