Reporting Tax Evasion

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I am aware of an number of individuals who are being payed overtime cheque in hand (untaxed income).

They got this agreement from their place of work due to a shortgage of these type of professionals and they refused to work overtime unless it was untaxed.

To make this matter more sensitive, they work for a govenment body.

I am tax payer myself and I was very annoyed to hear this was going on but is it up to me to report it or should I just mind my own business?
 
I would doubt that in the current climate that a government employer would even bother taking the risk. They could be either adjusting the gross to take account of it or two there may be legitimate expenses that they are able to pay tax free. There are many 'expenses' where vouchers are not needed.
 
This sounds like a fairy story.

The term "cheque in hand (untaxed income)" is an oxymoron.

Any official in a state body that ignores normal procedures in payments to suppliers (most particularly in relation to withholding tax on payments for professional services) would most likely lose their job when (not if) found out.
 
Any official in a state body that ignores normal procedures in payments to suppliers (most particularly in relation to withholding tax on payments for professional services) would most likely lose their job when (not if) found out.


I am 100% sure that what they are doing is totally illegal. I have reported them to the revenue and I hope they are crucified for it.

Nothing justifies Tax evasion.
 
If I were to pay a chap '€100' into his hand, and then gross up the amount for payroll purposes ..how would you know? How can you be 100% certain of tax evasion?

It would be interesting if you turn out to be wrong that the same be applied to you.
 
Why would an employer gross up wages behind the employee's back? Where would the advantage be to the employer?
 
This happens all the time - the construction industry is noted for it, and it has even been known to happen across the water in Premiership soccer clubs. What happens is that employees base their wage/salary expectations on a net basis, (eg 'I want €X into my hand every week). The employer agrees to pay this net figure, but in order to comply with the law, must then gross up the pay figure to account for the paye/prsi that would have been deducted had the pay deal been calculated on a gross basis. Employers Prsi is calculated on the grossed-up figure. This paye/prsi is then paid to the Revenue.

This is a bad business option for employers as they are exposed to a ripoff if employees are sufficiently smart to manipulate their tax credits to suit themselves, but otherwise there is no illegality involved once the above procedure is followed by the employer and the full paye/prsi is remitted to the Revenue.
 
Extopia,

"Grossing up" commonly occurrs where there was a (historical) union agreement to pay certain expenses tax free. Subsequently Revenue have determined that the payment (or a proportion of it) is liable for tax. The company in order to comply with the original union agreement will agree to "gross up" the payment. This "grossing up" intorduces considerable complication into the payroll process.

ajapale
 
ubiquitous said:
it has even been known to happen across the water in Premiership soccer clubs.
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I have strong suspicions that it also happens with professional soccer players plying their trade here albeit on a smaller scale!
 
ClubMan said:
I have strong suspicions that it also happens with professional soccer players plying their trade here albeit on a smaller scale!
Click to expand...

It does. In fact I would be fairly sure that most players don't have their net salaries grossed up correctly.

Not to mention all the guys coaching at GAA/soccer clubs around the country and paid well for it.
 
Ham Slicer said:
It does. In fact I would be fairly sure that most players don't have their net salaries grossed up correctly.
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The accounts and tax dealings of most eircom League clubs is a can of worms just waiting to be opened. Most clubs are run on a basis that is at best unviable and at worst trading recklessly or fraudulently. The [broken link removed] is just the tip of the iceberg I'm afraid.
 
Not to mention all the accusations about the biggest club in the league at the moment and their inability to pay any tax
(I not going to name as it is rumour AFAIK)

The Big Club would not go for that carry on

Are you going to Drogheda?
 
ubiquitous said:
This happens all the time - the construction industry is noted for it, and it has even been known to happen across the water in Premiership soccer clubs. What happens is that employees base their wage/salary expectations on a net basis, (eg 'I want €X into my hand every week). The employer agrees to pay this net figure, but in order to comply with the law, must then gross up the pay figure to account for the paye/prsi that would have been deducted had the pay deal been calculated on a gross basis. Employers Prsi is calculated on the grossed-up figure. This paye/prsi is then paid to the Revenue.
Click to expand...
I guess this wouldn't really be behind the employee's back, as the employee would get visibility to this on the payslip.
 
Bear in mind we were talking about a 'state employer'. Grossing up would be included in pay slip and P60. The point I was making is that people shouting about tax evasion should be sure of their facts.

The case we were given, would be as the legal boys say, not even be 'prima facie'. Although knowing the way IFRSRA pile in on stupid matters ..maybe the Revenue do the same.
 
I'm a bit naive about this but..If some knew of a business involved in widespread TAX evasion... WHO do you report them to? cAN IT BE DONE ONLINE?
 
I am aware of a Bank (one of big four) that pays certain casual staff cash in hand. I was appalled at this. I don't think I would bother reporting it though.....
 
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