Dáil Éireann Debate, Tuesday - 20 October 2020
230. Deputy Ged Nash asked the Minister for Finance the status of the compliance programme for the employment wage subsidy scheme, EWSS; the number of employers that have been inspected; the number of cases requiring further investigation; the number of employers that have been sanctioned; and if he will make a statement on the matter. [31486/20]
View answerThe Deputy will be aware that the Employment Wage Subsidy Scheme (EWSS) was legislated for under the Financial Provisions (Covid-19) (No. 2) Act, 2020. The EWSS provides a flat-rate subsidy to qualifying employers, based on the number of qualifying employees on the payroll.
The EWSS is administered by Revenue on a 'self-assessment' basis. I am advised by Revenue that the primary focus at the moment is on getting the scheme up and running and ensuring that all employers who are eligible for subsidy payments are registered for the EWSS and receive the payments they are entitled to quickly. Complementing this focus is a real-time monitoring, and where appropriate, review of submissions received from employers where anomalies are detected to ensure they are corrected in a timely manner, thereby ensuring employers receive their entitlements in a timely manner.
The legislation includes specific anti-abuse provisions which underpin the obligation on employers to operate the scheme as intended by the legislation, with bona fide commercial reasons underpinning any changes in the operation of employee payroll arrangements. Section 28B (6)(b)(i) refers to manipulation of payroll to include instances where contractual gross pay which would otherwise have been paid is deferred, suspended, increased or decreased. Section 28B (6)(b)(ii) refers to laying off one employee to replace him or her with more than one employee earning a lower wage, other than for bona fide commercial reasons.
The consequences of a determination by Revenue that abuse has occurred would be significant with sanctions imposed reflecting the seriousness of such actions including complete exclusion from the scheme at employer level, a requirement to repay all subsidies already received and PRSI credit issued together with interest, and the employer may face criminal prosecution. The number of sanctions issued will therefore be available in due course.
The purpose of the anti-abuse provisions are to act as a deterrent against abuse of the system. I am satisfied that these measures and the real-time monitoring of payroll submissions by Revenue will minimise the opportunity for abuse. The wage subsidy scheme is an exceptional measure to support business and employment in these difficult times and there will be no tolerance for abuse of the scheme. However, I am advised by Revenue that the vast majority of employers are making their best efforts to maintain as much employment as possible and are adjusting their payroll systems, in conjunction with their payroll software providers, to comply with the conditions of the scheme.
