Dáil Éireann Debate, Tuesday - 27 January 2026
393. Deputy Paul Nicholas Gogarty asked the Tánaiste and Minister for Finance if he will clarify his Department's policy on responding to voluntary disclosure requests; and if he will make a statement on the matter. [6452/26]
Amharc ar fhreagraI understand that this question relates to the Karshan disclosure opportunity that is being run by Revenue and that is available to all employers in the State, across all sectors, provided that they meet the terms as outlined.
This disclosure opportunity arises from the Supreme Court judgement in the case, Revenue Commissioners v. Karshan (Midlands) Ltd. t/a/Domino’s Pizza, which was issued in October 2023. This judgement sets out the factors to be considered when classifying an individual’s employment status for tax purposes, and whether workers are to be classified as being under a contract of service (employee), or a contract for service (self-employed) as regards to their income tax treatment.
While there has been no recent change to tax policy or tax treatment in this area, as a decision of the Supreme Court, the judgement is binding and must be applied to all sectors and all businesses operating in Ireland. Revenue, in carrying out its statutory function, is obliged to apply the judgement when undertaking its compliance activities.
In May 2024, Revenue published comprehensive guidance to outline its position in relation to the application of the Karshan judgement. This guidance explains the five step framework that is now required to be applied and provides a number of practical examples to assist businesses and organisations. Within this guidance, Revenue encouraged businesses to “urgently and comprehensively review arrangements with all workers and determine their employment status for taxation purposes”.
In September 2025, following consultation with certain stakeholders and tax practitioners, and in recognition of the implications of the judgement, Revenue provided an opportunity to employers to self-correct payroll tax issues arising from bona-fide classification errors for 2024 and, where necessary, 2025, without the application of interest or penalties. Revenue provided a window of over four months for this, with 30 January 2026 being the closing date for receipt of disclosures. I note that, in relation to this matter, the Revenue Commissioners issued a press release on 15 January 2026. This press release confirms that businesses that are preparing disclosures and that, after the submission deadline, identify a need to amend the details of a disclosure which has already been submitted, can do so and that Revenue will accept those amendments in accordance with the Code of Practice for Revenue Compliance Interventions where certain other conditions are met. This press release can be found on Revenue's website here - www.revenue.ie/en/corporate/press-office/press-releases/2026/pr-011526-reminder-of-disclosure.aspx
Detailed guidance on this disclosure initiative is set out in Tax and Duty Manual ‘Settlement arrangement arising from Revenue v Karshan (Midlands) Ltd. trading as Domino’s Pizza’ which is available at www.revenue.ie/en/tax-professionals/tdm/compliance/audit-and-other-compliance-interventions/karshan-settlement-guidance/karshan-disclosure-opportunity-guidance.pdf.
The independence of the Revenue Commissioners in their dealings with the tax affairs of any individuals, business or other entity under tax and customs legislation is critical to maintaining the integrity of the taxation system. Legal effect in this matter is provided under Section 101 of the Ministers and Secretaries (Amendment) Act, 2011. In line with this, the operation of the disclosure opportunity is a matter for the Revenue Commissioners.
