An inter-departmental working group has been formed to examine the options for merging the USC and PRSI. Achieving the objectives of simplification, preservation of the current tax base and a future stable social insurance fund will be a complex undertaking over a number of years, according to a statement from the Department of Finance.

The working group will be chaired by the Department of Finance and among the terms of reference the group will examine options which seek to address:

• the need to preserve the tax base having regard to the need for certainty, equity, and ease of compliance and administration
• current and future funding challenges facing the Social Insurance Fund
• issues likely to arise from a phased implementation over a number of years of the new instrument
• simplification of the personal tax and social insurance systems

The group has been set a deadline of 30 June 2018 to complete its work.

You can read the press statement on the Department of Finance website www.finance.gov.ie.