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SIPTU the union has condemned the huge growth in 'bogus self-employment' in the construction sector.
The Irish State could have lost over €600 million since 2007, according to a new report from the Irish Congress of Trade Unions (ICTU).
'False Economy: The Growth of Bogus Self-Employment in the Construction Industry' details the alarming growth in the sector and the possible loss to the state and taxpayer of up to €80 million per annum, since 2007.
According to Fergus Whelan, the author of the report, the losses stem directly from a lack of adequate risk control. He said: "In 2007, unions, employers and Revenue agreed a Code of Practice to tackle bogus self-employment, but the numbers shot up after that date, strongly suggesting the code is not being adhered to.
"In 2012, Revenue changed from a paper based application system for contractors, to an online system. A number of controls were lost with the move online and the numbers have since risen further."
The report reveals that every single bogus self-employed worker means an annual loss to the State of €2,886 in PRSI payments.
Current figures show some 27,600 sole traders operating in construction – with no adequate controls to ensure all are legitimate. If all are bogus, this equates to a loss of almost €80 million per annum and close to €640 million since the Code was agreed in 2007.
(CD/LM)
