The Oireachtas Transport Committee has heard a call for the Taxi Regulator to work with the Revenue Commissioners and Department of Social Protection to ensure that all those involved in the taxi industry are doing so legally.
Galway Taxi Association Chairman Declan McEntee said the incomes of taxi drivers are being eroded by people coming into the business who are working less than the regulatory 40 hours per week.
This forces full-time drivers to work excessive hours, which is a serious health and safety issue, he added.
Revenue Commissioners Assistant Secretary Norman Gillanders said that the Revenue is now empowered to obtain information from the Taxi Regulator and to match this with tax returns, to identify those who are double-jobbing.
He added that this information can also be shared with the Department of Social Protection.
He said that in a recent check in Galway he found that 20% of taxi drivers had compliance issues.
Fine Gael Deputy Paul Connaughton said that while there were once too few taxis, there are now too many.
He said there is no desire to take competition out of the taxi market, but said something would have to be done to find a middle way and reduce the current number of taxis.