Revenue puts brakes on double-jobbing taxi drivers

97i9y3941

http://www.independent.ie/national-news/revenue-puts-brakes-on-doublejobbing-taxi-drivers-2049507.html

WORKERS who hold down a second job as a taxi driver and who fail to declare their income face a crackdown by the Revenue Commissioners.

New powers granted in the Finance Bill yesterday allow the taxman to gather information on people holding taxi permits, and to check their annual returns to see if they are declaring their income.

Until now, Revenue could not access information on holders of taxi permits from the Commission for Taxi Regulation.

But the new powers are contained in the bill, which must be approved by the Houses of the Oireachtas.

Taxi drivers have bitterly complained for years about double-jobbing in the industry where drivers work full-time in one job and ply for hire at night.

With more than 28,000 taxis licensed across the country, the situation has become worse since the economic downturn as people stay home and avoid spending money.

Taxi unions have said that most drivers are compliant, but estimate a section of the industry has a full-time job and operates a taxi in the "black market".

One source said yesterday that taxis were being used to supplement a regular pay packet, and the extra income used for luxuries such as new cars or taking holidays.

Last night, the Department of Finance said the powers in the Finance Bill were part of a tax-compliance programme.

"Revenue is seeking information from the Taxi Regulator concerning persons who operate and are licensed in the taxi/hackney sector," a spokesman said.

"The Taxi Regulator and organisations representing taxi drivers have requested that information on these persons holding permits be transferred to Revenue, but a legal basis for doing so was required."

One source said the move came about because of submissions from taxi unions and the regulator, Kathleen Doyle.

"Obviously they feel that there are individuals operating as taxi drivers who shouldn't be and this would be one way of identifying them," the Finance spokesman said.

Last October Ms Doyle announced reforms to the industry where it would work with the Department of Social and Family Affairs to ensure that people claiming unemployment benefit were not driving a taxi.

so,people who are claiming unemployment benefit and driving a taxi is fraud?,and what about people claiming their pensions and driving taxis?,is there one rule for them and different one for someone else?...

Sleepy

Not sure how much good this will do. Would imagine most operating in the black market in this area are either driving hackneys or renting another driver's taxi in the evenings so their names aren't going to show up in the list of those with a taxi plate.

iMax

They have to provide their licence number & that has to be provided to revenue at time or tax return, so they can now check the licence numbers against filed returns, investigate the ones who have a zero or low return & file a claim. Good move for the industry but very late in the game.

Gurgle

New powers granted in the Finance Bill yesterday allow the taxman to gather information on people holding taxi permits, and to check their annual returns to see if they are declaring their income.

New powers? wtf?

Wasn't there always a law against earning money and not paying tax on it, or claiming the dole while you're working?

prinz

Fred83 wrote: »

so,people who are claiming unemployment benefit and driving a taxi is fraud?,and what about people claiming their pensions and driving taxis?,is there one rule for them and different one for someone else?...

Unemployment Benefits and pensions are completely different things for different purposes?

97i9y3941

prinz wrote: »

Unemployment Benefits and pensions are completely different things for different purposes?

they both are issued from the state though?,i mean a person working and claiming dole is rightfully branded a fraudster,but those who are claiming their gov pensions whilst taking up sub jobs in schools and driving taxis etc are legit?..

Oafley Jones

Fred83 wrote: »

i mean a person working and claiming dole is rightfully branded a fraudster,but those who are claiming their gov pensions whilst taking up sub jobs in schools and driving taxis etc are legit?..

Correct.

gandalf

Fred83 wrote: »

they both are issued from the state though?,i mean a person working and claiming dole is rightfully branded a fraudster,but those who are claiming their gov pensions whilst taking up sub jobs in schools and driving taxis etc are legit?..

Well assuming that they worked before they retired and paid their taxes then of course they are legit. Whereas someone claiming unemployment and then working on the side is a drain on the state.

Of course if they are claiming their pensions and pocketing their earnings from Taxi Driving without paying tax on that then they are in breach of their obligations as a citizen of the state.

anymore

From my own experience, if you are driving for a Taxi owner, you are entitled to 40 cent in every euro you collect - tips dont tend to be very much as quite a lot of irish people dont tip very well or at all. If it is quiet period - standing in queue etc, then you are not earning. So to earn any realistic sum, you do have to work long and hard. So if a guy had to pay even low tax rate on his taxi earnings, not to mention actually sending tax returns, then it might dissuade many not to work part time as taxi drivers. That is assuming deails of PSV licences are to be handed over as opposed to details of Taxi Permits. There are probably large numbers of PSV licences which are not being used at all.

marco_polo

Fred83 wrote: »

http://www.independent.ie/national-news/revenue-puts-brakes-on-doublejobbing-taxi-drivers-2049507.html



so,people who are claiming unemployment benefit and driving a taxi is fraud?,and what about people claiming their pensions and driving taxis?,is there one rule for them and different one for someone else?...

Eh you are entitled to work and draw the State Contributory Pension. The State Non Contributory Pension is means tested and not giving a full account of your means is fraud that is already actively enforced by the DSFA.

A Dub in Glasgo

I am struggling to see what the issue is here. It is quite right that people who are working and in receipt of the dole should get assessed. Obviously, people who get a pension and are working will be declaring their income for tax purposes? Unless some here are advocating that they should not declare their earnings?

ardmacha

Unemployed persons driving taxis may be welfare fraud, they are receiving benefits that imply they are not working when they fact are. Many other people, pensioners included, may do a bit of taxi driving or other work that they are entitled to do, but they have to pay tax on their earnings.

jimmycrackcorm

I don't see how the taxi drivers can complain about double-jobbing - i.e. holding down a full-time job and doing some part-time taxiing at night / weekends. There's no law against having multiple jobs and there's no such thing as a taxi "industry", just people who drive taxis to earn money. As for the revenue, at least it's a good move to validate tax returns.

Arnold Layne

anymore wrote: »

From my own experience, if you are driving for a Taxi owner, you are entitled to 40 cent in every euro you collect - tips dont tend to be very much as quite a lot of irish people dont tip very well or at all.

It is very hard to tip someone for doing their job, i.e. drive a taxi to get you from A to B, cut your hair, waiter/ waitress, takeaway deliveries, etc. Taxi drivers had it good for a long time where every drunken person would leave a tip. Personally, I will tip a Taxi Driver if I have good banter with the guy., same applies to a barber,and waiter/waitress.

Why tip if all you receive is a grunt from someone providing a service for which they get paid for?

dvpower

jimmycrackcorm wrote: »

I don't see how the taxi drivers can complain about double-jobbing - i.e. holding down a full-time job and doing some part-time taxiing at night / weekends. There's no law against having multiple jobs and there's no such thing as a taxi "industry", just people who drive taxis to earn money. As for the revenue, at least it's a good move to validate tax returns.

Many of them complain on the basis that people who have just worked a full day in their main job might not be up to a shift in a taxi; fatigued etc.

A weak argument tbh. Still, I've got some sympathy for fulltime taxi drivers who rely on taxiing to make a living seeing every Tom, Dick or Harry who wants to earn an extra few quid being able to enter the industry so easily.

railwaylad

i know of two security guards (nun national)that drive a taxi, and they are not part time guards there doing 39hours and then what ever taxi hours there doing.

AlekSmart

.

There's no law against having multiple jobs and there's no such thing as a taxi "industry", just people who drive taxis to earn money.

This is the thing,jimmycrackcorn....there IS now a law against having multiple jobs...
The Working Time Directive makes it illegal for anybody to work more than 48 hours a week averaged out over 17 weeks.
Those 48Hours are cumulative and apply to ALL employment,not just the primary one.
The WTD also lays down minimum rest period requirements and most certainly will impact upon persons who are in full-time employment and who then drive a taxi owned by another person.

Currently,self-employed persons do not come within the scope of the WTD,but a person in full time employment would most assuredly be in difficulty if stopped by Inspectors (Unlikely,I know !)

The pertinent point is that at a time when the Government should be making all forms of work more attractive,it is doing the complete opposite !

nesf

AlekSmart wrote: »

.

This is the thing,jimmycrackcorn....there IS now a law against having multiple jobs...
The Working Time Directive makes it illegal for anybody to work more than 48 hours a week averaged out over 17 weeks.
Those 48Hours are cumulative and apply to ALL employment,not just the primary one.
The WTD also lays down minimum rest period requirements and most certainly will impact upon persons who are in full-time employment and who then drive a taxi owned by another person.

Currently,self-employed persons do not come within the scope of the WTD,but a person in full time employment would most assuredly be in difficulty if stopped by Inspectors (Unlikely,I know !)

The pertinent point is that at a time when the Government should be making all forms of work more attractive,it is doing the complete opposite !

The Directive doesn't apply to workers who control their own hours. So long as you're deciding when you work and don't work in a taxi the WTD doesn't apply to you. Similar to how it doesn't apply to the self-employed in general.

What it prevents is an employer making you work >48 hours a week. That's it, and even then there's allowances for certain industries that have irregular working patterns to allow you more than 48 hours temporarily over peak periods.

Taxipete29

jimmycrackcorm wrote: »

I don't see how the taxi drivers can complain about double-jobbing - i.e. holding down a full-time job and doing some part-time taxiing at night / weekends. There's no law against having multiple jobs and there's no such thing as a taxi "industry", just people who drive taxis to earn money. As for the revenue, at least it's a good move to validate tax returns.

There is a Taxi industry.

You have the drivers
You have the Radio companies
You have people who rent out cars
You have people who install meters and make roofsigns
You have companies that supply radio equipment.

The defintion of industry is quite broad

Joey the lips

This is not the loop hole that is being exploited. The loophole thats being exploited is people are registering for a licence then when they get it a month later saying they cannot get work. Then they are de registering with revenue and working as a taxi. Insurence etc is correct revenue is not.

This is the loophole that is being exploited and very well by all accounts.

Spook_ie

Then other loophole that's open to exploitation is the fact that you only need a Tax Compliance certificate every 5 years ( shortly to drop to 3 ) to renew your PSV Driver license ( not the same as a plate which is yearly ) after that you can rent a taxi and revenue have no trace of you being active as you don't own a taxi.

There should be a legal requirement for people who rent out taxis to provide a full disclosure of all people renting taxis to revenue. At the moment all they need do is photocopy the license etc. for record purposes in case the taxi regulator calls