Dáil Éireann Debate, Thursday - 26 November 2020
91. Deputy Richard Boyd Barrett asked the Minister for Finance if he will audit the recipients of the wage subsidy scheme to ensure that it is not being abused; and if he will make a statement on the matter. [39235/20]
View answerThe Deputy will be aware that responsibility for the administration of the Employment Wage Subsidy Scheme (EWSS), which itself operates on a self-assessment basis, rests with the Revenue Commissioners. I am advised by Revenue that it takes a multifaceted approach to ensuring compliance by employers with the terms of the scheme.
Revenue undertakes a risk focused real-time examination of EWSS submissions as they are made to Revenue. Revenue engages with employers where Revenue has grounds to believe that an employer may have made a genuine error in respect of a submission. In addition, the risk control systems operated by Revenue result in real time engagement with employers where certain data validation or confirmation rules are triggered by reference to the data submitted. Such triggers have to be resolved before Revenue will certify payment of a claim by an employer.
The EWSS legislation enacted by the Oireachtas contains a number of important safeguards, such as the requirement that immediately at the end of each month, from August 2020 onwards, each employer availing of the scheme must carry out a self-review of its business circumstances. Following such a review, if an employer no longer meets the eligibility test for qualification for the scheme, then the employer must immediately cease claiming wage subsidy payments.
Section 28B (6) of the Emergency Measures in the Public Interest (Covid-19) Act 2020 includes specific anti-abuse measures in relation to EWSS. These measures underpin the necessity for employers to operate the scheme as intended by the legislation. They serve as a disincentive for any employer to enter into contrived non bona fide arrangements with employees, which are purely designed to maximise the benefits from the scheme by way of subsidy payments and PRSI credits claimed from Revenue.
Serious sanctions may be imposed where Revenue determines that an employer incorrectly claimed and received a subsidy payment, by engaging in unacceptable behaviour constituting an abuse of the scheme. This includes applying inappropriate accounting practices to deliberately misrepresent the true financial situation of the business. Such sanctions include – total exclusion from the scheme, all subsidies paid and PRSI credit issued in respect of all employees having to be repaid, together with interest and penalties, and the business may also face criminal prosecution.
The Deputy will be aware that Revenue carried out a comprehensive review of compliance with the Temporary Wage Subsidy Scheme (TWSS). While this review is not finished, it found a very high level of compliance with the terms of the scheme. This is very important. Both wage subsidy schemes are emergency and unprecedented measures to support businesses through the economic challenges posed by the pandemic; the schemes have allowed businesses to keep going and have supported employment by helping businesses keep the link with their employees. It is critically important that employers abide by the terms and conditions and I am assured by Revenue that, in the vast majority of cases, this is the case. I am satisfied that Revenue’s approach represents an appropriate balance between supporting businesses in accordance with the terms of the EWSS scheme and ensuring that there is a compliance framework in place that identifies and sanctions any serious non-compliance or abuse.
