Written Answers Nos. 41-60
41. Deputy Anne Rabbitte asked the Minister for Finance if childminders will continue to be able to access the childminders tax credit if they provide care in the home of the child on a temporary basis as a result of Covid-19 restrictions. [7609/20]
View answerChildcare services relief is an income tax exemption that is available to individuals who provide childminding services in their own homes. The legislation dealing with the relief is contained in section 216C of the Taxes Consolidation Act 1997.
In order to qualify for the relief, the individual providing the childminding services must –
- not receive more than €15,000 income per annum from the childminding activity,
- provide the service in their own home,
- not mind more than three children, who are under the age of 18 years, at any one time (this number does not include any child residing in the individual’s home), and
- be self-employed and registered for self-assessment with Revenue.
If another individual provides childcare services in the same home, the €15,000 income limit is divided between them.
Childcare workers who mind the children of healthcare and other essential workers are themselves essential workers. The HSE’s guidance provides that such childminding should only be done in the home of the child, rather than in the home of the carer. Revenue advises me that where, in line with HSE guidance, childminding services are provided in the home of the child rather than in the home of the carer, relief will still be available during the Covid-19 pandemic.
Revenue have also confirmed that the limit of three children will not apply where the individual is only caring for children who normally reside in the home concerned. Further information is being published on the Revenue website.
42. Deputy Marc MacSharry asked the Minister for Finance if he has considered extending the temporary wage subsidy scheme for the tourism and hospitality sector in view of the long-term impacts of Covid-19 for these businesses. [7612/20]
View answerThe Temporary Wage Subsidy Scheme (TWSS) is an economy-wide scheme that was introduced on 26 March 2020 to provide income support to eligible employees where the employer’s business activities have been negatively impacted by the COVID-19 pandemic.
I am aware of the concerns raised regarding the impact of COVID-19 on individual sectors of the economy and I note the some concerns have been raised regarding the pace of recovery for some sectors in particular.
However, I would also note that the reality of COVID-19 is that our whole economy and labour market have been rapidly transformed by this unprecedented shock and many important sectors have also been negatively impacted.
The objective of the TWSS is to maintain the link between the employer and employee, affording the employee the security of a job during and after the crisis as best we can, as well as enabling the business to help employers scale back up their business after the scheme has ended.
The ongoing economic impact will continue to be monitored closely, as will the recovery as we continue lift the COVID-19 restrictions.
44. Deputy Matt Carthy asked the Minister for Finance when he expects vehicle registration tax centres to reopen; and if he will make a statement on the matter. [7974/20]
View answerI am informed by the Revenue Commissioners that, in respect of registrations and examinations carried out in the National Car Testing Service Centres, a resumption proposal has been submitted by the Road Safety Authority to the Department of Transport, Tourism and Sport that would see a limited number of Centres resume on 8 June 2020 for NCT testing. If this resumption proposal is accepted then the VRT service would recommence on a scaled back basis from 29 June 2020. As details become available they will be updated on the Revenue website.
I am further informed by Revenue that registration on the Revenue Online Service of new cars and cars that have been pre-inspected has not been interrupted.
45. Deputy Cathal Crowe asked the Minister for Finance if he will consider measures (details supplied) to bolster the tourism sector. [8026/20]
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 - and it will pass – 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.
In respect of the proposals made by France and Germany, they are an important contribution and a step in the right direction on Europe’s recovery efforts. They are proposals from two Member States - we are assessing the detail of these proposals along with input from other Member States. Agreement on a way forward will require the approval of all 27 Member States.
Ireland will continue to engage positively in the MFF and recovery plan discussions and work with Member States and the institutions to build consensus for early agreement. There are issues and matters, including those raised in the French and German proposals, that need careful consideration to assess the implications for Ireland. It will not be until then that we will fully know the specifics of the extent to which and how Member States can avail of funding from the MFF and the Recovery Fund.
46. Deputy Louise O'Reilly asked the Minister for Finance if the criteria for the primary medical certificate will be reviewed and qualification criteria eased; and if he will make a statement on the matter. [8029/20]
View answerThe Disabled Drivers and Disabled Passengers (Tax Concessions) Scheme provides relief from VAT and VRT (up to a certain limit) on the purchase of an adapted car for transport of a person with specific severe and permanent physical disabilities, payment of a Fuel Grant, and an exemption from Motor Tax.
To qualify for the Scheme an applicant must be in possession of a Primary Medical Certificate. To qualify for a Primary Medical Certificate, an applicant must satisfy one of the following conditions:
-be wholly or almost wholly without the use of both legs;
- be wholly without the use of one leg and almost wholly without the use of the other leg such that the applicant is severely restricted as to movement of the lower limbs;
- be without both hands or without both arms;
- be without one or both legs;
- be wholly or almost wholly without the use of both hands or arms and wholly or almost wholly without the use of one leg;
- have the medical condition of dwarfism and have serious difficulties of movement of the lower limbs.
The Scheme represents a significant tax expenditure. Between the Vehicle Registration Tax and VAT foregone, and the fuel grant, the scheme cost €65m in each of 2016 and 2017, €70m in 2018 and €72m in 2019. This figure does not include the revenue foregone in respect of the relief from Motor Tax, which is also available to those who avail of the Scheme.
I understand and sympathise with any person who suffers from a serious physical disability and can’t access the scheme under the current criteria. However, given the scope and scale of the scheme, any possible changes to it can only be made after careful consideration, taking into account the existing and prospective cost of the scheme as well as the availability of other schemes which seek to help with the mobility of disabled persons, and the interaction between each of these schemes.
Accordingly, I have no plans to amend the qualifying medical criteria for the Disabled Drivers and Disabled Passengers Scheme at this time.
47. Deputy Holly Cairns asked the Minister for Finance his views on adjusting the calculation for Covid-19 wage subsidy to be based on annual average wages to compensate for seasonal variations in income for some professions. [8212/20]
View answerThe Temporary Wage Subsidy Scheme (TWSS) was legislated for in section 28 of the recently enacted Emergency Measures in the Public Interest (Covid-19) Act 2020.
Deputies will be aware that 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 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 must be accepted that the TWSS cannot be adapted to meet the particular circumstances of individual employers or employees.
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. The key conditions of 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 before, in general, 15 March 2020, but extended recently to 1 April 2020.
The latter two conditions were particularly designed with a view to preventing abuse of the scheme and there are no plans for these to be revisited at present.
48. Deputy Holly Cairns asked the Minister for Finance his views on allowing tax relief on private health insurance for dental treatments to help stimulate the sector when the emergency has passed. [7052/20]
View answerThe position is that tax relief is available already for dental treatment as set out beneath.
Section 470 of the Taxes Consolidation Act 1997 provides for income tax relief, at the standard rate, to individuals who pay for medical insurance to an approved insurer.
Qualifying medical insurance policies can be for health insurance, dental insurance and health and dental insurance combined.
The relief is given as a discount on the cost of the policy, regardless of whom the policy is for. This is known as tax relief at source (TRS). In respect of a policy taken out for an adult, the relief available is equal to the lesser of either: 20% of the cost of the policy or 20% of €1,000 (equal to a credit of €200). In respect of a policy taken out for a child, relief available is equal to the lesser of either: 20% of the cost of the policy or 20% of €500. For the purposes of this relief, a child is any individual under 21 years of age.
49. Deputy Holly Cairns asked the Minister for Finance his views on directing the Revenue Commissioners to amend the terms of the MED 2 scheme to allow relief at the marginal rate for the remainder of 2020. [7053/20]
View answerTax relief in respect of health expenses is provided for under section 469 of the Taxes Consolidation Act 1997. Section 469 defines "health expenses" as "expenses in respect of the provision of health care including the services of a practitioner".
For the purposes of Section 469, health care does not include routine dental treatment. Where an individual incurs health expenses in relation to non-routine dental treatment, a Form MED 2 must be completed and certified by the Dental Practitioner who performs any of the qualifying treatments outlined on the form. Tax relief is provided for at the standard rate.
There are no immediate plans to provide for tax relief in respect of non routine dental treatment at the marginal rate. In this regard, it should be borne in mind that the provision of tax relief at the standard rate ensures that all taxpayers are treated equally regardless of whether they pay tax at the standard or higher rate.
50. Deputy Donnchadh Ó Laoghaire asked the Minister for Finance further to Parliamentary Question No. 124 of 17 December 2019, if further consideration has been given to enhanced or expanded tax relief or other forms of incentives on teleconferencing equipment with the objective of reducing emissions by minimising unnecessary travel to meetings in view of recent developments and changes in the way in which society works in terms of employment; and if he will make a statement on the matter. [7062/20]
View answerAs I indicated to the Deputy in the question to which he refers, it is established Government practice to use exemptions or incentives in the tax system in limited circumstances where there are demonstrable market failures and where a tax-based incentive is more efficient than a direct expenditure intervention.
Despite the recent developments brought about by the Covid-19 pandemic, it is not clear that the circumstances indicate that an intervention specifically in relation to teleconferencing equipment would be appropriate.
That said, I am advised by Revenue that an annual allowance (known as a wear and tear allowance) is available for capital expenditure incurred on the provision of machinery or plant for business purposes. The allowances are granted at a rate of 12.5% per annum over 8 years. The item of plant or machinery must be in use at the end of the period for which the allowance is being claimed. Expenditure incurred on teleconferencing equipment would be eligible for the allowance provided such equipment is used for business purposes.
52. Deputy Michael McGrath asked the Minister for Finance if he will address a matter raised in correspondence (details supplied) in relation to the temporary wage subsidy scheme; and if he will make a statement on the matter. [7272/20]
View answerI am advised by Revenue that all cases which have applied for refunds under the Temporary Wage Subsidy Scheme (TWSS) and which were rejected on the basis of failing to meet the eligibility criteria are reviewed by Revenue.
The TWSS builds on data returned to Revenue through its real-time PAYE system. It must be accepted that the underlying legislation and the scheme itself cannot be tailored to meet every individual unique set of circumstances for either employers or employees. The core principles of 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 15 March 2020.
Accordingly, the TWSS can only operate in respect of an employee, whether full-time or part-time, who was on the payroll of the employer as at 29 February 2020. Thus, where an employer has not met its statutory PAYE reporting obligations for February 2020 by 15 March 2020, then the employer is not eligible to participate in the scheme. These requirements of the TWSS were critical safeguards against abuse and exploitation of the scheme. PAYE legislation requires employers to report their payroll to Revenue in real time as the payroll is run.
Arising from the ongoing review of specific cases since the TWSS started, it became apparent to Revenue that a number of employers were unable to access the scheme because they failed the 15 March 2020 rule but had qualified under all other conditions of the scheme and are otherwise tax compliant. Given that the purpose and objective of the scheme is to maintain the link between the employee and employer, Revenue decided, under its care and management provisions, to allow such employers access to the scheme, provided:
- the employees in respect of whom the wage subsidy is claimed were included on the employer’s payroll on 29 February 2020,
- the February 2020 payroll submissions were submitted to Revenue before 1 April 2020, and
- the payroll submissions for all previous months were submitted to Revenue before 15 March 2020.
I am advised by Revenue that, in terms of any particular extenuating circumstances that may apply in a specific case, and having regard to the overall criteria as set out in my reply, Revenue is happy to engage with a business as to how those extenuating circumstances may be able to be addressed for the purposes of the TWSS.
I have been further advised by Revenue that contact was made with the agent for the specific case concerned in this instance, arising from which it has been confirmed to the agent that that access to the TWSS is now available, on a forward going basis, for the case concerned.
53. Deputy Barry Cowen asked the Minister for Finance if there is an obligation under the temporary wage subsidy scheme on employers to pay employees if the employees have returned to work as certain restrictions are lifted (details supplied); and if he will make a statement on the matter. [7292/20]
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. In the context of the need for immediate implementation of the TWSS, the scheme necessarily had to build on data returned to Revenue through its real-time PAYE system.
The key conditions of 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 before, in general, 15 March 2020, although this was extended recently to 1 April 2020.
The latter two conditions were particularly designed with a view to preventing abuse of the scheme.
The TWSS is predicated on the employer wanting to keep the employees on the payroll and to retain them until business picks up and can only operate in respect of an employee, whether full-time or part-time, who was on the payroll of the employer as at 29 February 2020. 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 due to the restrictions brought in by the Government or has continued to trade with employees continuing to work part-time or work full time with similar hours as before the Covid-19 pandemic. Moreover, the scheme has no role in relation to the employer/employee relationship in so far as terms, conditions and entitlements of the employment are concerned.
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 system reasons, the employer will need to enter at least €0.01 in Gross Pay when running its payroll.
The question of an individual’s entitlements in an employment context following his or her resumption of duty after a period of leave, whether paid or unpaid, and the question of what wages an employer may or may not be in a position to pay such an employee in the light of the impact of the Covid-19 pandemic on the employer’s business, are matters that are outside the remit of the TWSS.
54. Deputy Charlie McConalogue asked the Minister for Finance the details of his discussions and conclusions made with the insurance industry on compensating businesses with disruption cover for infectious diseases on the need to honour business interruption claims; and if he will make a statement on the matter. [7312/20]
View answerI am aware that there have been many concerns expressed about how the insurance industry is responding to the needs of its business policyholders in these difficult times, in terms of honouring business interruption claims and also with regard to whether forbearance and other flexible measures are being offered to them.
I and my officials have been engaging with the sector in an effort to get some much needed certainty for business policyholders. On business interruption claims, I wrote to Insurance Ireland on the 27th of March and indicated amongst other things the following:
(i) insurers should not attempt to reject claims on the basis of interpreting policies to their own advantage.
(ii) that where a claim can be made because a business has closed, as a result of a Government direction due to contagious or infectious disease, that the recent Government advice to close a business in the context of COVID-19 should be treated as a direction.
Insurance Ireland, on behalf of its membership, responded on the 3rd of April and stated that it accepted both of my points. It did however indicate that each insurance policy is different and there may well be other factors which lead to the adjudication of whether a business interruption claim is valid or not, other than Government advice to close.
Following on from my correspondence, I held a teleconference with Insurance Ireland, on the 17th of April, where I reiterated that some insurers, by adopting a “blanket” rejection of all business interruption claims, were doing the industry significant reputational damage and were not treating customers fairly. I also discussed a range of other insurance related matters on the teleconference, including motor insurance premium refunds, and a statement outlining the nature of my engagement with Insurance Ireland was issued by the Department and can be found here:
https://www.gov.ie/en/press-release/edabf2-minister-donohoe-emphasises-his-concerns-to-insurance-ireland-regard/
In addition, the Deputy should note that the Central Bank of Ireland (CBI) wrote to the CEOs of major insurers outlining its expectations of them in this crisis from a consumer protection perspective. The key messages that the Bank conveyed are as follows:
- Insurers must put forward consumer-focussed solutions on policy payment breaks, rebates and claims.
- While most insurance policies are clear, if there is a doubt about the meaning of a term, the interpretation most favourable to the consumer should prevail.
- The Central Bank expects the CEOs of Irish authorised firms to take responsibility for the oversight of how their firm is managing determinations of whether claims are covered or not in the context of COVID-19.
The CBI is continuing to engage with the non-life insurance industry on these matters and will continue to closely monitor the situation to ensure that firms are meeting the expectations as previously set out.
In conclusion, I have set out already to the House that I strongly believe that insurers should treat their customers honestly, fairly and professionally and honour those elements of the policies covered including business interruption claims in line with the CBI’s Consumer Protection Code. However, I cannot compel insurers to pay business interruption claims and neither I, as Minister for Finance, nor the Central Bank, have any role in adjudicating on such matters. If there continues to be a disagreement between an insurer and a policyholder, then the appropriate channels for resolving them must be followed i.e. bringing the matter to the attention of the Financial Services and Pensions Ombudsman or seeking to go down the litigation route. In this regard, I note that a number of legal actions have been initiated by some publicans. Notwithstanding these constraints, my officials are maintaining regular contact with Insurance Ireland on this and other issues and are keeping me updated on developments. Furthermore, I have also recently indicated in the Dail, that I intend engaging again directly with Insurance Ireland in the near future.
55. Deputy Michael McGrath asked the Minister for Finance if he will address a matter raised in correspondence (details supplied) relating to the temporary wage subsidy scheme; and if he will make a statement on the matter. [7328/20]
View answerThe Deputy will be aware that the Temporary Wage Subsidy Scheme (TWSS) was legislated for in section 28 of the Emergency Measures in the Public Interest (Covid-19) Act 2020 and that 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 quickly, having regard to the Government objective of getting assistance to employers and employees, where businesses have been seriously affected by the pandemic and the necessary restrictions introduced in response to this Public Health emergency.
The TWSS builds on data returned to Revenue through its real-time PAYE system. It must be accepted that the underlying legislation and the scheme itself cannot be tailored to meet every individual unique set of circumstances for either employers or employees. A key element of the eligibility is that the employees were on the payroll at 29 February 2020. This requirement together with the other eligibility requirements for the TWSS were particularly designed as safeguards against abuse of the scheme.
Accordingly, the TWSS can only operate in respect of an employee, whether full-time or part-time, who was on the payroll of the relevant employer as at 29 February 2020. Craft Apprentices alternate between ‘on-the-job’ training with an employer and ‘off-the-job training’ in an education centre. The employer pays the Apprentice while she/he is being trained ‘on-the-job’ and a training allowance is paid through the Education Shared Business Services Unit of the Department of Education and Skills while the Apprentice is attending ‘off-the-job’ training.
Eligible employers can participate in the scheme in respect of any eligible Apprentice who was on the payroll at 29 February 2020. Apprentices who were not on the payroll of the employer at 29 February 2020 are not eligible employees for the purposes of the TWSS. Furthermore, the wage subsidy per employee is calculated based on the net pay reported by the employer for January and February 2020. The scheme does not distinguish between periods in ‘off-the-job’ training where the Apprentice was not in receipt of a wage from the employer and was not therefore reported on the payroll of the employer and so from an operational standpoint the employer would have no basis period on which to base the wage subsidy. Accordingly, the TWSS can only operate in respect of an Apprentice, who is on the payroll of the employer as at 29 February 2020.
The question of an individual’s entitlements in an employment context following his or her resumption of duty after a period of training, and the question of what wage amount an employer may or may not be in a position to pay such an Apprentice in the light of the impact of the Covid-19 pandemic on the employer’s business, are matters that are outside the remit of the TWSS. Those employees who are laid off following such a resumption of duty would be entitled to claim the Pandemic Unemployment Payment from the Department of Employment Affairs and Social Protection.
57. Deputy Michael Healy-Rae asked the Minister for Finance his views on whether finance packages are needed for businesses (details supplied); and if he will make a statement on the matter. [7346/20]
View answerThe Deputy suggests extending the Temporary Wage Subsidy Scheme (TWSS) to a particular business sector.
The 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 scheme 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.
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 objective 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.
A key eligibility criterion for the scheme requires that where a business is experiencing a significant negative economic disruption due to the Covid-19 pandemic, the employer must make a declaration which states that, based on reasonable projections, as a result of disruption to the business caused (or to be caused) by the Covid-19 pandemic, there will be a decline of at least 25% in the future turnover of, or customer orders for, the business for the duration of the pandemic; and that as a result the employer cannot pay normal wages and outgoings fully, but nonetheless wants to retain its employees on the payroll.
An employer that has been hit by a significant decline in business but has strong cash reserves, which are not required to fund debt, may still qualify for the scheme, but the Government would expect such an employer to continue to pay some element of employees’ wages. Thus, where a business has been forced to close due to public health requirements resulting in future turnover declining by at least 25%, it is expected that such an employer would be eligible for the TWSS.
The Deputy may also wish to note that, outside of the TWSS, there is a wide range of financial supports and guidance available to help businesses impacted by the COVID-19 crisis. Details are available at the following link:
https://www.gov.ie/en/publication/c644c0-supports-for-businesses-impacted-by-covid-19/
58. Deputy Peter Burke asked the Minister for Finance the supports being put in place for professionals such as dentists that are often sole traders, many of whom have had no income or business since mid-March 2020 due to a lack of PPE; if the Revenue Commissioners will withhold tax bills from dentists for the time being; if supports can be provided to get such businesses back open; and if he will make a statement on the matter. [7350/20]
View answer88. Deputy Holly Cairns asked the Minister for Finance if he will temporarily suspend the collection of professional withholding tax from payments made to dentists contracted by the HSE and the Department of Employment Affairs and Social Protection to treat medical card and PRSI-eligible patients, respectively. [8199/20]
View answerI propose to take Questions Nos. 58 and 88 together.
In March this year, Revenue announced that it was suspending debt collection and the charging of interest on late payment for the January/February and March/April 2020 VAT periods and the February, March and April 2020 PAYE (Employer) periods, which has been extended to include the May/June 2020 VAT period and May and June 2020 PAYE (Employer) liabilities. These arrangements are available to all businesses experiencing tax payment difficulties as a result of the Covid-19 pandemic, including professionals such as dentists who have been unable to trade due to Covid-19. However, the VAT measure would not be relevant to dentists, whose activity is exempt from VAT (under Schedule 1 Paragraph 2(5) of the Value-Added Tax Consolidation Act 2010).
These measures are currently being operated by Revenue on an administrative basis. Legislation will be introduced in due course to put the scheme on a statutory footing and to provide for a reduced statutory interest rate that will apply to payment of the warehoused debts:
- 0% for the “Covid-19 restricted trading phase”, the period when the business is unable to trade due to the Covid-19 related restrictions, and including the first two months after the business resumes trading;
- 0% for the “zero interest” phase, which lasts for 12 months after the end of the first phase;
- 3% per annum for the “reduced interest phase”, which begins after the end of the second phase
The warehousing measures currently operated by Revenue on an administrative basis, as well as the reduced statutory interest rate, are important support measures aimed at assisting all businesses, including dentists and other sole traders, who have been adversely affected by Covid-19.
Where a dentist or other professional is an employer, s/he may have availed of the Temporary Wage Subsidy Scheme (TWSS) to make payments to employees. This was provided for in section 28 of the Emergency Measures in the Public Interest (Covid-19) Act 2020. The TWSS 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,
- the February 2020 payroll submissions were submitted to Revenue before 1 April 2020, and
- the payroll submissions for all previous months were submitted to Revenue before 15 March 2020.
The TWSS is predicated on the employer wanting to keep the employees on the payroll and to retain them until business picks up. The amount of the subsidy for each employee is calculated based on the average net weekly pay reported for January and February 2020. Regarding the subsidy amount, no distinction is made based on whether the business has closed due to Government restrictions or has continued to trade with employees continuing to work part-time or full-time with similar hours as before the Covid-19 pandemic.
As regards the personal tax liability of dentists or other self-employed individuals, a self-assessed income taxpayer is required to pay preliminary tax by 31 October in a year, or later if paying online via the Revenue Online Service (ROS). The amount of the payment is
- 90% of the current year’s liability;
- 100% of the prior year’s liability; or
- 105% of the tax due for the tax year preceding the immediately previous tax year (often called the ‘pre-preceding year’).
The “pre-preceding year” option only applies to taxpayers paying by direct debit. Taxpayers not paying by direct debit can choose the lower of the other two options; in most cases 90% of this year’s liability is likely to be considerably less than the previous year’s liability.
In addition, Revenue has confirmed that, to accelerate interim refunds of Professional Services Withholding Tax (PSWT) during the Covid-19 pandemic, they will accept refund claims via MyEnquiries where legible copies of the original F45 and F50 documents are attached.
Full details are available at https://www.revenue.ie/en/corporate/communications/covid19/revenue-services.aspx
Finally, sole traders may be eligible to apply to the Department of Employment Affairs and Social Protection for the COVID-19 Pandemic Unemployment Payment scheme.
59. Deputy Dessie Ellis asked the Minister for Finance if the number of staff dealing with customers experiencing difficulties contacting the Revenue Commissioners regarding tax queries will be increased; if the tax office is taking telephone queries at this time; the measures that can be put in place to improve the response time for queries submitted online through the Revenue website; and if he will make a statement on the matter. [7375/20]
View answerI am advised by Revenue that its telephone helpline services are currently curtailed due to the COVID-19 related restrictions. Further information regarding these services is available on Revenue’s website at link www.revenue.ie/en/corporate/communications/covid19/revenue-services, which may be of assistance to the Deputy.
Revenue is, however, continuing to provide a full service in respect of customer enquiries received via its on-line ‘MyEnquiries' system and through the normal postal service, and has deployed additional resources to ensure such queries are replied to in as short a turnaround time as possible. For example, Revenue is currently receiving between 4,000 and 5,000 PAYE related enquiries per day of which almost 50% are replied to on a next day basis while the remainder are dealt with well within its customer service standards.
If the Deputy is aware of a specific case that is experiencing difficulties, he should provide Revenue with the details as soon as possible so that contact can be made, and the issue rectified. The Deputy can make direct contact with Revenue via the Oireachtas Helpline at telephone number (01)- 8589999. The Helpline operates between 09:30am and 05.00pm, Monday to Friday, and operates a voicemail service for out of hours calls.
60. Deputy Steven Matthews asked the Minister for Finance if he will consider reviewing the rules regarding accessing the temporary wage subsidy scheme (details supplied); and if the Revenue Commissioners can be given some leniency in this regard in order to deal with businesses on a case-by-case basis. [7378/20]
View answerThe Temporary Wage Subsidy Scheme (TWSS) is an emergency measure to deal with the impact of the Covid-19 pandemic on the economy. The scheme builds on data returned to Revenue through its real-time PAYE system. It must be accepted that the underlying legislation and the scheme itself cannot be tailored to meet every individual unique set of circumstances for either employers or employees. The core principles of the scheme, as prescribed in the underlying law, are that the business is suffering significant negative economic impact due to the pandemic, that the employees were on the payroll at 29 February 2020 and that the employer had fulfilled its PAYE reporting obligations for February 2020 before, in general, 15 March 2020. The latter two requirements in particular were critical safeguards against abuse of the scheme.
I have been advised by Revenue that following a review of cases since the TWSS commenced, it became apparent that a number of employers had been unable to access the scheme because they failed the 15 March 2020 rule but had qualified under all other conditions of the scheme and are otherwise tax compliant. Given the purpose and objectives of the scheme, Revenue announced on 24 April 2020, under its care and management provisions, that it would allow such employers access the scheme provided:
- the employees in respect of whom the wage subsidy is claimed were included on the employer’s payroll on 29 February 2020,
- the February 2020 payroll submissions were submitted to Revenue before 1 April 2020, and
- the payroll submissions for all previous months were submitted to Revenue before 15 March 2020.
Where a business qualifies for the scheme under the revised criteria and makes the necessary declaration that it is significantly impacted by the Covid-19 crisis, the wage subsidies under the scheme will be payable for eligible employees in respect of payroll submissions made on or after 24 April 2020, with a pay date on or after 24 April 2020. These revised arrangements cannot be made retrospective. Where a business fails to meet the revised qualifying criteria for TWSS but wishes to further engage with Revenue on the matter, it must provide supporting evidence setting out the rationale for why it should be included in the scheme. This supporting documentation should be provided via Revenue’s myEnquiries system.
As I have indicated, the PAYE reporting obligations built into the eligibility criteria for the TWSS were designed in particular to prevent abuse of the scheme. It is not proposed to make any further concessions in relation to compliance with those reporting requirements for the purposes of qualification for the scheme.
