Written Answers Nos. 51-70
51. Deputy Emer Higgins asked the Minister for Finance the advice he can provide to a person who lost his or her job during the Covid-19 crisis, applied for a mortgage break for three months and now calculates that, over the lifetime of the mortgage, he or she will repay nearly triple the amount saved during the mortgage break; and if he will make a statement on the matter. [11915/20]
View answerI have been advised by the Central Bank of Ireland (the Central Bank) that it has been engaging closely with regulated entities on payment breaks during the pandemic period. Payment breaks are a significant support for borrowers and provide breathing space to help them address short-term liquidity constraints due to the impact of COVID-19.
A key focus of the Central Bank's has been to ensure that regulated entities act in a way that protects the best interests of borrowers and is in line with the relevant codes and regulatory requirements. A well-established and robust consumer protection framework is in place for mortgage customers in Ireland.
Through ongoing engagement with sector representatives and firms, the Central Bank are working to ensure that affected borrowers are supported through this unprecedented period of stress. To that effect, the Central Bank has published its expectations for payment breaks in credit unions, banks and other firms. These correspondences are available in full on the Central Bank’s website. The Central Bank has clearly stated that it is essential that regulated firms take a pro-active and consumer-centric approach to all issues arising from COVID-19.
Of particular importance is ensuring that customers are provided with sufficient information to understand how the payment break operates, the impact on their loan repayments and cost of credit, and how their case will be treated when the payment break ends. The Central Bank have set out their expectation to industry that at the end of the agreed payment break, customers should be given options to repay the outstanding balance including (i) repaying the loan within the remaining term, or (ii) extending the term of the loan. This choice should apply for all loans, including mortgages, and the impact of the options on the overall cost of credit and monthly repayments should be fully explained to the customer. Customers should also be allowed to make reduced payments during the payment break where they wish to do so. This recognises that the borrower circumstances may differ. It is therefore important that borrowers are presented with the options and information to allow them to make choices which best suit their own circumstances.
Where borrowers continue to experience financial difficulties at the end of the payment break, supports are available through the existing consumer protection framework, for example, the Code of Conduct on Mortgage Arrears 2013. Due regard must be given to the fact that each case of financial difficulty is unique and needs to be considered on its own merits. The Central Bank will ensure that lenders are operationally ready and prepared to engage with borrowers during, or at expiry of, the six-month payment break in order to identify whether or not the borrower requires further support, and if so, to consider appropriate and sustainable solutions, as soon as possible.
52. Deputy Marc MacSharry asked the Minister for Finance if the provision of the temporary wage subsidy scheme will be extended to seasonal workers in the tourism sector who were not on the payroll in January and February 2020 due to commence employment in March and April similar to other years; if the level of wage subsidy payable to workers who worked weekends in January and February 2020 in cases in which the business was forced to close due to Covid-19 restrictions (details supplied) will be reviewed; and if he will make a statement on the matter. [11918/20]
View answerThe Temporary Wage Subsidy Scheme (TWSS) is provided for in section 28 of the Emergency Measures in the Public Interest (Covid-19) Act 2020.
The TWSS is an emergency measure to deal with the impact of the Covid-19 pandemic on the economy. Of necessity, the underlying legislation and the scheme itself were developed really quickly, having regard to the urgent Government objective of getting much needed financial assistance to employers and employees, where businesses have been seriously affected by the pandemic and the necessary restrictions introduced to fight the spread of the Covid-19 virus. It cannot be tailored to meet every individual set of circumstances for either employers or employees.
The TWSS necessarily builds on data returned to Revenue through its real-time PAYE system. The core principles of the scheme are that:
- the business is suffering significant negative economic impact due to the pandemic,
- the employees in respect of whom the wage subsidy is claimed were included on the employer’s payroll on 29 February 2020, and
- the February 2020 payroll submissions were submitted to Revenue before, in general, 15 March 2020 but recently extended, by concession, to 1April 2020.
Revenue advise me that the business in the instance raised by the Deputy does not meet the eligibility criteria for the TWSS at employer level and, thus, is not a position to qualify for the scheme.
53. Deputy John McGuinness asked the Minister for Finance if he will consider reducing the VAT rate on hire clothing to 13.5% in the October 2020 budget; and the reason for the decision to increase the rate from 13.5% to a higher rate some years ago. [11929/20]
View answerI am advised by Revenue that the VAT rating of goods and services is subject to EU VAT law, with which Irish VAT law must comply. In general, the VAT Directive provides that all goods and services are liable to VAT at the standard rate unless they fall within Annex III of the Directive, in respect of which Member States may apply either one or two reduced rates of VAT. The hire of clothing is not included in Annex III and as such is subject to the standard rate of VAT, currently 23%, which has always been the position. There is no discretion under the Directive for Ireland to apply a reduced rate of VAT to the hire of clothing.
54. Deputy Ged Nash asked the Minister for Finance if his attention has been drawn to the plans of a bank (details supplied) to close a service in County Kilkenny in view of the fact the State is a shareholder in the bank; his views on this development; and if he will make a statement on the matter. [11948/20]
View answerThe Deputy will be aware that as Minister for Finance, I am precluded from intervening in how Bank of Ireland manages its day-to-day business. Decisions in this regard are solely the responsibility of the board and management of the bank which must be run on an independent and commercial basis. The independence of the banks in which the State has a shareholding is protected by Relationship Frameworks which are legally binding documents that cannot be changed unilaterally. These frameworks, which are publicly available, were insisted upon by the European Commission to protect competition in the Irish market.
Notwithstanding this officials from my department contacted Bank of Ireland and were given the following response:
"In recent months, we have seen the impact of COVID-19 on our customers and on our business in a range of ways. One impact is on the roles we have available at our contact centres in Kilkenny and Tallaght. These locations are an extremely important part of our customer service operations, employing both permanent and contract staff. Prior to the onset of the current pandemic, attrition levels in our contact centres were at a level where we would often be able to offer permanent positions with Bank of Ireland to contract staff at the end of their contract period. However, since COVID, the number of vacancies arising within the business has significantly decreased. This development, coupled with expected efficiencies in our processes, unfortunately means that a number of contract positions will come to an end from late June 2020 to January 2021. We communicated with all those impacted and our CPL partners set out a range of supports which are available."
55. Deputy Jackie Cahill asked the Minister for Finance if he will review the anomaly in the temporary wage subsidy scheme in which a limited company that runs a quarterly payroll has been deemed ineligible for the scheme for that reason; and if he will make a statement on the matter. [11972/20]
View answerThe Government’s priority in so far as the Temporary Wages Subsidy Scheme (TWSS) is concerned was and is to ensure that employers experiencing significant negative economic disruption from COVID-19 can register for and start to receive payment quickly. The purpose of the scheme is to ensure that the relationship between employers and employees is maintained to the greatest extent possible so that businesses can restart operations quickly once the crisis has passed.
The TWSS is provided for in section 28 of the Emergency Measures in the Public Interest (Covid-19) Act 2020. Of necessity, the underlying legislation and the scheme itself were developed quickly, having regard to the objective of getting assistance to employers and employees, where businesses have been seriously affected by the pandemic and the necessary restrictions introduced to fight the spread of the Covid-19 virus.
In the context of the compelling need for immediate implementation of the TWSS, the scheme necessarily had to build on data returned to Revenue through its real-time PAYE system for January and February 2020. The key criterial for eligibility for the scheme, as prescribed in the underlying law, are that –
- the business is suffering significant negative economic impact due to the pandemic,
- the employees were on the payroll at 29 February 2020, and
- the employer had fulfilled its PAYE reporting obligations for February 2020 by, in general, 15 March 2020, but recently extended, by concession, to 1 April 2020.
The latter two criteria were particularly designed to prevent abuse and exploitation of the scheme.
The TWSS cannot be tailored to meet the particular individual circumstances of every single employer or employee. Given the mechanism for operation of the TWSS, Revenue has advised me that where an employer operates a quarterly payroll, the necessary reporting requirements will not be met as the payroll frequency must be weekly, fortnightly or monthly in order for the TWSS to operate. Since the employers in question only pay their employees once a quarter, there were no wage payments in January or February 2020 and, therefore, no payments on which to base the subsidy.
Revenue further advise me that, under PAYE legislation, some employers qualify to pay their PAYE/PRSI/USC liabilities to Revenue on a quarterly basis. Some of those employers may nonetheless operate their payroll on a weekly, fortnightly or monthly basis. Where this is the case, while the PAYE/PRSI/USC payments are due quarterly, the employers are still legally obliged to make their payroll notifications to Revenue as the payrolls are run. If those employers complied with their obligations in that respect, they would then be eligible for the TWSS in relation to the employees concerned.
56. Deputy Gino Kenny asked the Minister for Finance if the Revenue Commissioners’ customs service has ever intercepted the poppy seed imports of retailers and food businesses that use poppy seed in the manufacture of their products; and if he will make a statement on the matter. [11998/20]
View answerI am advised by Revenue that there is currently no prohibition or restriction on the importation of poppy seeds into the State and therefore the product is not subject to routine intervention by Revenue. However, consignments of poppy seeds could be subject to customs checks to confirm certification, if claiming to be organic in nature.
I am advised by Revenue that poppy seeds were previously subject to regulatory checks in 2018 on behalf of the Environmental Health Service (EHS) of the Health Service Executive (HSE). This was to facilitate the identification of consignments of poppy seeds from third countries for sampling under the national chemical sampling plan for food. Sampling was carried out to ensure compliance with Regulation 401/2006 which relates to the levels of mycotoxins in foodstuffs. This was a temporary measure in 2018 and any consignments that were intercepted were subsequently released to the importer.
Revenue’s customs interventions are risk based and all consignments being imported into the State are subject to customs controls and checks. Such controls or interventions may be to verify the details on the customs declaration, to ensure that the correct value is declared, and duty paid or to protect against the possible illegal importation of prohibited goods.
57. Deputy Catherine Murphy asked the Minister for Finance if he or his officials have engaged with mortgage lenders in the context of the practice of reassessing applicants of mortgages that have availed of the pandemic unemployment payment; and if he will make a statement on the matter. [12003/20]
View answerThe Central Bank has advised that it expects all regulated firms to take a consumer-focused approach and to act in their customers’ best interests at all times, including during the COVID-19 pandemic, and my Department maintains close contact with the Central Bank and the BPFI as the lending industry seeks to address the difficulties the COVID-19 situation is causing for both borrowers and lenders.
Lenders continue to process mortgage applications and have supports in place to assist customers impacted by COVID-19. The Banking & Payments Federation Ireland (BPFI) have published a Covid-19 Support FAQ which customers can consult, or customers can contact their lender directly, if they have any queries or concerns about the impact of COVID-19 on their mortgage application.
Within the parameters of the regulatory framework, as set out below, the decision to grant or refuse an individual application for mortgage credit, or temporarily suspend a mortgage approval in principle, is a commercial decision to be made by the regulated entity and it is not possible for me to instruct lenders in that regard.
The European Union (Consumer Mortgage Credit Agreements) Regulations 2016 (CMCAR) provide that before concluding a mortgage credit agreement, a lender must make a thorough assessment of the consumer’s creditworthiness. The assessment must take appropriate account of factors relevant to verifying the prospect of the consumer being able to meet his or her obligations under the credit agreement. The CMCAR provide that a lender should only make credit available to a consumer where the result of the creditworthiness assessment indicates that the consumer’s obligations resulting from the credit agreement are likely to be met in the manner required under that agreement. The assessment of creditworthiness must be carried out on the basis of information on the consumer’s income and expenses and other financial and economic circumstances which is necessary, sufficient and proportionate. In addition, the Central Bank’s Consumer Protection Code 2012 imposes ‘Knowing the Consumer and Suitability’ requirements on lenders. Under these requirements, lenders are required to assess affordability of credit and the suitability of a product or service based on the individual circumstances of each borrower.
58. Deputy Brendan Griffin asked the Minister for Finance if the temporary wage subsidy scheme will be made available to a person (details supplied) in County Kerry who was unable to return to work after maternity leave due to the Covid-19 crisis; and if he will make a statement on the matter. [12016/20]
View answerThe eligibility criteria for the Temporary Wage Subsidy Scheme (TWSS) requires that employees, whether full-time or part-time, are on the employer payroll on 29 February 2020 and have received wage payments in January and February 2020. However, the rules as set down, unintentionally did not consider employees who were on maternity leave or adoptive leave at that time and did not feature on the employer payroll on 29 February or receive wage payments in January or February 2020.
To rectify the unintended anomaly as quickly as possible a process that facilitates employers in claiming the TWSS in respect of eligible employees returning from maternity or adoptive leave since 26 March 2020 was put in place. Revenue can also back-date the subsidy payment to the later of, 26 March 2020, the date the employer registered for the TWSS, or the date of the person’s return to employment. No retrospection is applicable if the returning employee was in receipt of the Pandemic Unemployment Payment (PUP) from the Department of Employment and Social Protection for the period in question.
To provide the necessary information to Revenue, employers should log on to Revenue’s Online Service (ROS), myEnquiries platform, and complete a short form with the required details relating to the employee returning from maternity or adoptive leave. It is not possible for Revenue to calculate the subsidy amount for the employee without this information.
Revenue has advised me that it has not received any information regarding the person in question from her employer and as such cannot calculate any subsidy payment for her. Revenue has also confirmed to me that as soon as this information is provided it will calculate the person’s entitlement as quickly as possible.
60. Deputy Danny Healy-Rae asked the Minister for Finance if the VAT rate will be reduced to at least 5% in order to ensure that businesses will have a chance of surviving the 2020 summer season during the Covid-19 pandemic; and if he will make a statement on the matter. [12042/20]
View answerThe Government is fully aware of the unprecedented impact that the coronavirus is having on business and people’s livelihoods. In this regard a range of measures have been introduced to provide income support to those who need it while also giving confidence to employers to retain the link with employees so that when this crisis passes our people can get back to work as quickly and seamlessly as possible.
In addition to current support measures, my officials are examining a range of possible measures to ensure that the economy is in a position to recover rapidly while maintaining a stable tax base.
61. Deputy Gino Kenny asked the Minister for Finance if his attention has been drawn to the fact that couples that were approved for a mortgage prior to the Covid-19 pandemic, one of whom has had to avail of the temporary wage subsidy scheme but will return to employment, have had the mortgage offer suspended; the reason for same; if a solution will be introduced in order that prospective buyers can proceed with a home purchase; and if he will make a statement on the matter. [12057/20]
View answerThe Central Bank has advised that it expects all regulated firms to take a consumer-focused approach and to act in their customers’ best interests at all times, including during the COVID-19 pandemic, and my Department maintains close contact with the Central Bank and the BPFI as the lending industry seeks to address the difficulties the COVID-19 situation is causing for both borrowers and lenders.
Lenders continue to process mortgage applications and have supports in place to assist customers impacted by COVID-19. The Banking & Payments Federation Ireland (BPFI) have published a Covid-19 Support FAQ which customers can consult, or customers can contact their lender directly, if they have any queries or concerns about the impact of COVID-19 on their mortgage application.
Within the parameters of the regulatory framework, as set out below, the decision to grant or refuse an individual application for mortgage credit, or temporarily suspend a mortgage approval in principle, is a commercial decision to be made by the regulated entity and it is not possible for me to instruct lenders in that regard.
The European Union (Consumer Mortgage Credit Agreements) Regulations 2016 (CMCAR) provide that before concluding a mortgage credit agreement, a lender must make a thorough assessment of the consumer’s creditworthiness. The assessment must take appropriate account of factors relevant to verifying the prospect of the consumer being able to meet his or her obligations under the credit agreement. The CMCAR provide that a lender should only make credit available to a consumer where the result of the creditworthiness assessment indicates that the consumer’s obligations resulting from the credit agreement are likely to be met in the manner required under that agreement. The assessment of creditworthiness must be carried out on the basis of information on the consumer’s income and expenses and other financial and economic circumstances which is necessary, sufficient and proportionate. In addition, the Central Bank’s Consumer Protection Code 2012 imposes ‘Knowing the Consumer and Suitability’ requirements on lenders. Under these requirements, lenders are required to assess affordability of credit and the suitability of a product or service based on the individual circumstances of each borrower.
62. Deputy Michael McGrath asked the Minister for Finance if he will address a matter raised in correspondence (details supplied) in relation to a forthcoming corporation tax deadline with particular regard to small and medium-sized enterprises; and if he will make a statement on the matter. [12076/20]
View answerThe flexible approach taken by Revenue to debt collection and enforcement activity has provided vital liquidity support to businesses during the COVID-19 crisis.
In this context, Revenue has emphasised the importance of businesses continuing to file tax returns promptly, even in circumstances where they cannot pay the associated liabilities. Revenue has also acknowledged that some businesses may have difficulty in completing accurate returns due to the pandemic and in such circumstances advises that they submit a best estimate, which can be amended at a later date if necessary. This is important to enable both Revenue and my Department to have a clear picture of the portfolio of emerging debt, particularly debt that may be included in the proposed tax ‘debt warehousing’ arrangements that will be provided for in legislation later this year. In relation to ‘debt warehousing’, it will be a condition of the scheme that tax returns are kept up to date.
It is too early to make decisions regarding tax filing deadlines that fall due later in the year as it is not possible to predict the progress of public health measures and their likely impact on the capacity of businesses to meet their obligations with the support of their professional advisers. However, I have every confidence that Revenue will make appropriate decisions regarding these deadlines in due course and will continue to support all businesses affected by the pandemic to the greatest extent possible, as has been the case to date.
63. Deputy Michael McGrath asked the Minister for Finance the taxation issues that arise in respect of Irish citizens in the context of the double taxation treaty between Ireland and New Zealand that sell their home in New Zealand and wish to repatriate the proceeds here to buy a property here; and if he will make a statement on the matter. [12078/20]
View answerI am advised by the Revenue Commissioners that the determining factor in respect of the allocation of taxing rights under the Ireland-New Zealand Double Taxation Convention is the tax residence status of the taxpayer.
Ireland and New Zealand are the “Contracting States” for the purposes of the Convention.
Under Article 15 (Alienation of Property) of the Convention, gains derived by a resident of a Contracting State (Ireland or New Zealand) from the disposal of a property in the other Contracting State may be taxed in that other State in which the property is located. On that basis, whether the person concerned is a resident of Ireland or New Zealand for the purposes of the Convention at the time of the sale of the property, New Zealand will have taxing rights under the Convention in respect of any gains arising on the disposal of the property.
If the person is resident or ordinarily resident for tax purposes in Ireland then Ireland would also be entitled to tax the gain arising but would be obliged to give credit for the New Zealand tax paid in arriving at the Irish liability. However, as the property is the home of the persons concerned, they may qualify for the exemption from Irish capital gains tax in respect of the disposal of a principal private residence (Section 604 of the Taxes Consolidation Act 1997). For the purposes of this capital gains tax exemption, a principal private residence is a house or apartment which is owned by a taxpayer and is occupied by the taxpayer as their only or main residence.
A person’s tax residence status depends on the number of days they are present in Ireland during a tax year. They will be resident in Ireland for tax purposes if they are in Ireland for a total of:
- 183 days or more in a tax year, or
- 280 days or more in a tax year plus the previous tax year taken together, with a minimum of 30 days in each year.
If a person is tax resident in Ireland for three consecutive tax years, they become ordinarily resident from the beginning of the fourth tax year.
There are no Irish taxation implications in respect of the repatriation of the proceeds from any disposal into Ireland.
Finally, although citizenship is not the determining factor in respect of the allocation of taxing rights under the Convention, under Article 25 (Non-Discrimination) an Irish national cannot be subjected to any taxation or requirement in New Zealand which is more burdensome than those imposed on New Zealand nationals.
64. Deputy Michael Healy-Rae asked the Minister for Finance if he will address a matter (details supplied) regarding inheritance tax; and if he will make a statement on the matter. [12084/20]
View answerThe standard rate of Capital Acquisitions Tax is 33%. There are three tax-free thresholds depending on the relationship between the disponer and the beneficiary, with CAT applying on the amount inherited or gifted over the thresholds, as follows:
- Group A threshold (€335,000) - Applies where the beneficiary is a child (including certain foster children) or minor child of a deceased child of the disponer. Parents also fall within this threshold where they take an absolute inheritance from a child.
- Group B threshold (€32,500) - Applies where the beneficiary is a brother, sister, niece, nephew, or lineal ancestor or lineal descendant of the disponer.
- Group C threshold (€16,250) - Applies in all other cases.
All gifts/inheritances received since 1991 from all disponers in the relevant group must be aggregated together when calculating the taxable value. The balance of gifts or inheritance above the threshold is taxable.
I am advised by Revenue that the date on which capital acquisitions tax (CAT) is payable is determined by the ‘valuation date’ on which the market value of the property included in a gift or an inheritance must be established. Where this date is between 1 January and 31 August, CAT is payable by 31 October in the same year. Where this date is between 1 September and 31 December, CAT is payable by 31 October in the following year.
Section 30 of the Capital Acquisitions Tax Consolidation Act 2003 contains the rules for determining the valuation date. The valuation date depends on the circumstances particular to a case and is not a fixed date in relation to all gifts and inheritances. In the case of a gift, the valuation date is generally the date on which the property is given to a beneficiary. In the case of an inheritance, however, it can be earlier as it is the date on which the executors of the will become entitled to retain the property for the benefit of a beneficiary. Generally, this is the date on which probate or administration is granted.
Where the benefit consists of property, it may well be the case that CAT is payable before a beneficiary has received the property due to a delay in completing the administration of an estate. Equally, where a beneficiary has actually received the property, CAT may be payable before a beneficiary has had the opportunity to sell that property and pay the tax liability. Outside of the current COVID-19 circumstances, the length of the conveyancing process is such that it is often the case that a CAT liability arises before a property can be sold to pay that liability. To provide for such situations, taxpayers have a statutory entitlement to payment by instalments in certain circumstances. Monthly instalment payments for up to five years may be allowed subject to the payment of interest at an annual rate of 8%. However, Revenue has discretion to allow payment of CAT by instalments over a longer period in exceptional circumstances where the tax cannot be paid without excessive hardship.
In such circumstances, Revenue also has discretion to allow payment to be postponed for such period and on such terms (including the waiver of interest) as it thinks fit. Revenue will consider each case on its merits, taking into account both the financial circumstances of the beneficiary and the nature of the gift or inheritance involved.
65. Deputy Sean Sherlock asked the Minister for Finance if the temporary wage subsidy scheme will continue for event and arts workers until the mass gathering ban and social distancing are not required for medical safety here. [12097/20]
View answerThe Temporary Wage Subsidy Scheme (TWSS) is provided for in section 28 of the recently enacted Emergency Measures in the Public Interest (Covid-19) Act 2020 (The Act).
The underlying legislation and the TWSS itself were developed having regard to the Government objective of providing assistance to employers and employees, where businesses have been seriously affected by the Covid-19 pandemic and the restrictions which were introduced as a result. The scheme is available to eligible employers across all sectors, excluding the Public Service and Non-Commercial Semi-State Sector. This includes businesses that have closed due to the Covid-19 restrictions and those that continue to operate and employ their workforce. The sector to which the Deputy refers is no different in this regard.
In relation to the future of the TWSS, it has always been made clear that this support cannot last forever but, as the Deputy will be aware, earlier this month the Government decided that the scheme should remain until the end of August. As the public health restrictions are eased in the coming weeks, I will expect to see a continued decline in reliance on the scheme throughout the summer as the economy continues to re-open and people are able to return to work. This economic recovery will be monitored and will inform a decision later in the summer on the need for further extension or tapering beyond August. Furthermore, I acknowledge that certain sectors will face particular challenges into the future as we gradually re-open our economy, and this is one of many factors that will inform future decisions.
66. Deputy Sean Sherlock asked the Minister for Finance if he has considered a reduced VAT rate of 9% for the event and arts sector for three years. [12100/20]
View answerThe Government is fully aware of the unprecedented impact that the coronavirus is having on business and people’s livelihoods. In this regard a range of measures have been introduced to provide income support to those who need it while also giving confidence to employers to retain the link with employees so that when this crisis passes our people can get back to work as quickly and seamlessly as possible.
In addition to current support measures, my officials are examining a range of possible measures to ensure that the economy is in a position to recover rapidly while maintaining a stable tax base.
67. Deputy James Browne asked the Minister for Finance his views on employees receiving the basic amount of the temporary wage subsidy scheme in view of the fact that they are working more hours than the equivalent reimbursement of €350; and if he will make a statement on the matter. [12130/20]
View answer78. Deputy Pa Daly asked the Minister for Finance the way in which employees returning to work should be compensated, in particular employees who are working more hours per week than they were in January and February 2020 and are still being paid based on average net weekly pay. [12494/20]
View answerI propose to take Questions Nos. 67 and 78 together.
Section 28 of the Emergency Measures in the Public Interest (Covid-19) Act 2020 is the legislation underpinning the Temporary Wage Subsidy Scheme (TWSS). The Government’s priority in so far as the TWSS is concerned was, and is, to ensure that all employers experiencing significant negative economic disruption from COVID-19 can register for, and start to receive, payment quickly. The purpose of the scheme is to ensure that the relationship between employers and employees is maintained to the greatest extent possible so that businesses can restart operations quickly once that is possible. Eligibility for the scheme can be satisfied by an employer once they meet the relevant criteria.
The TWSS scheme is available to eligible employers across all sectors, excluding the Public Service and Non-Commercial Semi-State Sector. This includes businesses that have closed due to the Covid-19 restrictions and those that continue to operate and employ their workforce. The amount of the subsidy for each employee is calculated based on the average net weekly pay reported for January and February 2020. There is no distinction made regarding the subsidy amount based on whether the business has closed for any defined period due to the restrictions brought in by the Government or has continued to trade with employees continuing to work full time or part time, with similar hours as before the Covid-19 pandemic.
The employer is expected to make best efforts to maintain the employee’s net income, reflected in the average net weekly payment for January and February 2020, for the duration of the TWSS. There is, however, no minimum amount that the employer must pay as an additional payment in order to be eligible for the scheme, but, for Revenue operational systems reasons, the employer will need to enter at least €0.01 in Gross Pay when running its payroll.
If the employer makes an additional payment greater than the difference allowed by the scheme, then the subsidy value refundable to the employer will be reduced by this excess amount when the refund reconciliation is performed by Revenue in due course. The scheme is not prescriptive as regards the hours that must be worked.
Revenue published detailed guidance on employer eligibility and supporting proofs for the TWSS and it is available on the Revenue website:
https://www.revenue.ie/en/corporate/communications/documents/guidance-on-employer-eligibility-and-supporting-proofs.pdf .
68. Deputy Alan Kelly asked the Minister for Finance if a copy of all briefing documents provided to Fianna Fáil, Fine Gael and the Green Party for their programme for Government negotiations will be provided. [12149/20]
View answerI can advise the Deputy that the Department of the Taoiseach will be arranging for the publication of material provided by Government Departments in accordance with agreed procedures, via the Department of the Taoiseach, to Fianna Fáil, Fine Gael and the Green Party, as part of Government formation negotiations.
As such, briefing material will be made available centrally rather than by my Department on an individual basis.
69. Deputy Paul Murphy asked the Minister for Finance if he will request his officials and-or the Revenue Commissioners to contact an airline (details supplied) to request that it immediately pay the temporary wage subsidy scheme payments to those employees that it made redundant on 29 May 2020 due to Covid-19, but for whom it has continued and will continue to receive payments under the scheme until 29 June 2020 on account of it keeping these ex-employees on its payroll list for revenue until that date; and if he will request that it pay these workers such temporary wage subsidy scheme payments due until 29 June 2020 alternatively. [12251/20]
View answer70. Deputy Paul Murphy asked the Minister for Finance if he will request that his officials and-or the Revenue Commissioners will contact an airline (details supplied) to request that it immediately remove from its payroll listing, those employees who were made redundant on 29 May 2020 due to Covid-19 but have been unable to claim the pandemic unemployment payment, due to the fact that it has the ex-employees listed on its payroll and that it indicates will remain listed on its payroll for purposes of the temporary wage subsidy scheme until 29 June 2020, meaning the ex-employees continue to be ineligible for the pandemic unemployment payment and will have had no income for a month; and if he will arrange for such employees to receive arrears of the pandemic unemployment payment from 29 May 2020. [12269/20]
View answerI propose to take Questions Nos. 69 and 70 together.
I am advised by Revenue that, notwithstanding any obligations imposed on the Revenue Commissioners under section 851A of the Taxes Consolidation Act 1997 or any other enactment relating to the confidentiality of taxpayer information, section 28 of the Emergency Measures in the Public Interest (Covid-19) Act 2020 provides that the names and addresses of all employers to whom a temporary wage subsidy has been paid will be published by Revenue on its website. Revenue advise me that it will publish these details when the temporary wage subsidy scheme has ended. The publication of these details, in conjunction with the individual’s payslip on which an employer is obliged to identify the amount of subsidy paid to the individual, will enable employees to establish if their employer has availed of the scheme. In the interest of fairness to all employers participating in the scheme, Revenue will not be commenting on whether any particular employer has availed of the scheme until the scheme has ended.
I am further advised by Revenue that penalties will apply to any abuse of the wage subsidy scheme by an employer self-declaring incorrectly, not providing funds to employees or non-adherence to Revenue Guidance, and any other relevant guidance issued.
