Dáil Éireann Debate, Wednesday - 15 July 2026
152. Deputy Malcolm Byrne asked the Tánaiste and Minister for Finance if research has been carried out by his Department or agencies within the aegis of his Department as to the impact of a case (details supplied) ruling on the arts sector and arts organisations; the advice which is offered to organisations impacted; and if he will make a statement on the matter. [53939/26]
Amharc ar fhreagraThe Supreme Court judgment delivered in October 2023 in Revenue v Karshan (Midlands) Ltd. trading
as Domino’s Pizza provided important clarity on the classification of workers for tax purposes by setting out a structured framework for determining employment status. This level of clarity was not available prior to the judgment, and employers had previously assessed worker classification based on the information and guidance then in place.
It is important to note that the judgment and the decision-making framework, as a decision of the Supreme Court, is relevant across all sectors, including the arts sector. Revenue, in carrying out its statutory function, is obliged to apply the judgment and has no discretion whatsoever on this matter. It is also acknowledged that there will always be legitimate operators in the freelance and wider economy where workers are correctly classified as self-employed. A worker’s employment status is not a matter of choice, rather, it depends on the facts and circumstances of the engagement. While it is usually clear whether an individual is employed or self-employed, it is not always obvious.
It was in this context that Revenue announced the Karshan settlement opportunity in September 2025. This provided a means for businesses to correct payroll tax issues for 2024 and 2025, arising from bona-fide classification errors, without the imposition of interest and penalties. In order to avail of the opportunity, businesses were required to submit a disclosure by the deadline of 30 January 2026 and pay all related liabilities in full or request a Phased Payment Arrangement to pay the liabilities when submitting their disclosures.
Extensive Tax and Duty Manual Part 05-01-30 - Revenue Guidelines for Determining Employment Status for Taxation purposes issued in May 2024 which outlines the implications for determining employment status for taxation purposes arising from the Supreme Court judgement in the Karshan case is available at: www.revenue.ie/en/tax-professionals/ebrief/2024/no-1402024.aspx
The TDM is very detailed, running to 58 pages and including 19 examples, based on real cases, some of which are with reference to the Arts sector, to demonstrate how the framework applies across all sectors. However, as is the case with guidance in general, regardless of the subject matter, it cannot cover every eventuality, circumstance or employment scenario. The clear key message in the TDM is that in determining whether an individual is self-employed or an employee for tax purposes, the employer (engaging the person) is required to apply the five-step framework by reference to the facts and circumstances of the individual case. Revenue’s TDMs are regularly reviewed and updated, where appropriate.
The next phase is the verification of the disclosure submissions received, which is ongoing, to ensure compliance with the terms published in September 2025 in the Tax and Duty Manual Revenue Guidelines – Settlement arrangement arising from Revenue v Karshan (Midlands) Ltd. trading as Domino’s Pizza.
