Dáil Éireann Debate, Tuesday - 1 December 2020
215. Deputy Cormac Devlin asked the Minister for Finance if his attention has been drawn to the case of a person (details supplied); the reason an employer was allowed to submit an application for the temporary wage subsidy scheme and have it accepted yet nine months later reverse the decision; if the matter will be investigated and the decision reconsidered; and if he will make a statement on the matter. [39815/20]
View answerThe Temporary Wage Subsidy Scheme (TWSS), which is provided for in section 28 of the Emergency Measures in the Public Interest (COVID-19) Act 2020, operated from 26 March 2020 to 31 August 2020 and was replaced by the Employment Wage Subsidy Scheme (EWSS) from 1 September 2020. The scheme was introduced as an emergency measure to provide financial support to businesses that were severely economically impacted by the pandemic and enabled employees whose employers could no longer afford to pay wages receive subsidy payments. The scheme was not intended as a support to employers in respect of employees who provide domestic duties within a private household nor was it ever implied that it applied to them.
The provision of domestic duties by an employee within a private household, where the employer is the owner or occupier is not a business activity. A relevant business in the context of the TWSS generally includes manufacturing, buying, selling or supplying goods or services with a view to making a profit, none of which can be associated with employing staff who carry out domestic duties. It is also not possible for such employers to meet the minimum 25% business turnover decline eligibility test as there is no turnover associated with engaging an employee to carry out domestic duties.
The TWSS operated on a self-assessment basis with the onus on applicants to satisfy themselves that they fully met the eligibility criteria for the scheme and to self-declare to Revenue that they correctly qualified. To assist employers in determining their eligibility, Revenue published very extensive guidance, which clearly set out the qualifying conditions, including the requirement that a minimum 25% decline in business turnover had occurred due to COVID-19 related restrictions.
Revenue consistently referenced the minimum 25% business turnover decline eligibility requirement throughout the intensive media briefings, press releases and political responses that were provided during the period of operation of the TWSS. Revenue also clearly confirmed that, in line with all other self-assessment regimes, it would engage with TWSS claimants to ensure they properly qualified for the subsidy and that payments were passed on to eligible employees. This was a very important action to undertake given the level of public funds invested in the TWSS.
As part of this compliance checking process, Revenue contacted all employers (approx. 66,500) that availed of the TWSS, including the person in question, to ensure they were correctly eligible for the scheme. As part of the compliance check, employers were asked to confirm that they had suffered the minimum 25% decline in business turnover, and to provide payslip evidence that the funds were correctly passed on to their relevant employees. Where ineligible employers incorrectly claimed and received TWSS payments, they were requested to repay the amounts received.
Revenue wrote to the person in question in early November 2020 requesting repayment of the TWSS amounts incorrectly claimed by them. Revenue also confirmed to the person that they were ineligible for the scheme as they did not meet the qualifying criteria in their capacity as an employer of a domestic employee. Revenue had previously set out the qualifying criteria for the scheme in correspondence with the person in March 2020, which clearly stated the requirement for a decline of at least 25% in business turnover. The person subsequently self-declared to Revenue on 26 March 2020 that they met the eligibility criteria, including in respect of the required minimum 25% decline in business turnover, and on that basis was provided with access to the scheme.
There is now a requirement on the person to repay the amounts that were incorrectly claimed, and it is important that they engage with Revenue as quickly as possible to agree a repayment arrangement. Non engagement on the matter by the person may result in Revenue raising assessments and taking action to secure the repayment in question.
