Sport Ireland is seeking almost €300,000 in back taxes from an unspecified number of workers after a change in Revenue guidelines led to them being reclassified as employees instead of self-employed contractors. The unpublished 2024 annual report for the national body for developing sport said recovery of the money was “probable”, indicating it expected the issue to be settled in the second half of this year. The matter arose after a Supreme Court ruling in proceedings known as the Domino’s Pizza case, which found food delivery drivers were staff and not self-employed. Sport Ireland paid out €625,811 in 2024 to meet tax and social insurance liabilities incurred in relation to the workers. This was as a result of a May 2024 revision to Revenue guidance on determining employment status for tax purposes.The annual report, seen by The Irish Times, said Sport Ireland was pursuing the workers for almost half that money and was separately seeking a Revenue value-added tax (VAT) refund for another large sum in relation to the matter. Replying to questions on Friday, Sport Ireland did not say how many of its workers were affected. The Department of Culture, Communications and Sport said it was “aware of the impact on Sport Ireland” of the Revenue guidance. “This guidance was development on foot of the Supreme Court judgment in the 2023 Revenue Commissioners v Karshan [Domino’s Pizza] case,” it said.That ruling prompted Revenue to call on employers to review arrangements with workers to determine their employment status for tax purposes. “Upon completion of this review, we submitted a request to Revenue to prepare an ‘unprompted qualifying disclosure’,” Sport Ireland said. “This voluntary admission was a proactive compliance step, not a response to a settlement demand or a tax bill.”The report added: “As a publicly funded body, Sport Ireland have an obligation to seek repayment from the contractors/employees of any payroll taxes that should have been deducted from payments made to them during the period, totalling €298,567. “Given this reclassification, Sport Ireland are also seeking a refund [from Revenue] of the VAT paid on these amounts, totalling €236,755.”According to the annual report, Sport Ireland’s €625,811 payment to Revenue related to pay-as-you-earn liabilities, universal social charge and pay-related social insurance. “The increase in payroll tax expenses, amounting to €625,881, has been included in the company’s operating expenses for the year ending 31 December 2024 ... The increase in payroll tax liabilities has been recorded as a payable as of 31 December 2024,” said the report. No restatements of prior period figures were necessary as the changes related to the 2024 financial year.