The Dáil’s spending watchdog has called on Revenue to investigate ‘bogus self-employment’ cases which it said could be costing the Exchequer up to ‘€1billion a year’.

This practice sees employers misclassify workers as self-employed rather than employees for tax gains.

This can also impact on the worker negatively, as they lose out on benefits self-employed people cannot claim.

A call has been made for Revenue to investigate a self-employment scam which it said could be costing up to ‘€1billion a year’. Pic: Getty Images

The Public Accounts Committee has called for Revenue to launch an investigation into the matter. In particular, it identified issues in the construction and courier sectors.

The PAC found that under a 1997 agreement by Revenue and courier firms, couriers are treated ‘as self-employed for tax purposes’.

Revenue said this arose from a social welfare appeals officer’s decision that ‘couriers were regarded as self-employed for PRSI purposes’.

Self-Employment Scam
The Public Accounts Committee identified issues in the construction and courier sectors. Pic: Shutterstock

The PAC said it was concerned that the decision to classify these workers in such a way has resulted in employees losing out on benefits they should be entitled to.

They also noted the Exchequer has also potentially lost uncollected taxes and PRSI.

The committee has now called for Revenue to conduct an investigation into the 1997 agreement. This, members said, should establish…

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