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Covid-19 Pandemic Supports

Dáil Éireann Debate, Tuesday - 15 December 2020

Tuesday, 15 December 2020

Questions (199, 208)

Jennifer Whitmore

Question:

199. Deputy Jennifer Whitmore asked the Minister for Finance if he will facilitate access to CRSS for businesses (details supplied) who do not currently qualify for the payment; and if he will make a statement on the matter. [43129/20]

View answer

Catherine Murphy

Question:

208. Deputy Catherine Murphy asked the Minister for Finance if he will reconsider making the CRSS available to the direct marketing companies and tour operators. [43114/20]

View answer

Written answers

I propose to take Questions Nos. 199 and 208 together.

The CRSS is a targeted support for businesses significantly impacted by restrictions introduced by the Government under public health regulations to combat the effects of the Covid-19 pandemic. The support is available to companies, self-employed individuals and partnerships who carry on a trade or trading activities, the profits from which are chargeable to tax under Case I of Schedule D, from a business premises located in a region subject to restrictions introduced in line with the Living with Covid-19 Plan.

Details of CRSS were published in the Finance Bill 2020 and detailed operational guidelines on the scheme have been published on the Revenue website at: https://www.revenue.ie/en/corporate/press-office/budget-information/2021/crss-guidelines.pdf.

Travel restrictions or social distancing measures are not the level of restrictions to which the CRSS refers. It is also not sufficient that a business is experiencing a reduction in demand for its goods or services because of Covid-19. To be eligible to make a claim under CRSS, a business must, under the specific terms of the regulations, be required to either prohibit, or significantly restrict, customers from accessing its business premises to purchase goods or services, with the result that, during the period of restrictions, turnover does not exceed an amount based on 25% of the average weekly turnover of the business in 2019 (or in 2020 in the case of a new business).

Where a business does not ordinarily operate from a fixed business premises located in a region that is subject to restrictions, such as a tour operator, that business will not meet the eligibility criteria.

Where a language school carries on a trade, the profits from which are chargeable to tax under Case I of Schedule D, from a business premises (generally a building) located in a region for which restrictions apply, it may qualify for CRSS provided all eligibility criteria are met. Whether a language school’s activities are in the nature of a trade will depend on the particular facts of the case.

To be eligible to claim under CRSS a language school must, under specific terms of Covid restrictions, be required to either prohibit, or significantly restrict, customers from accessing the premises in which the business of the language school is ordinarily carried on, with the result that it has to temporarily close or to operate at a significantly reduced level.

Under nationwide Level 5 restrictions, which applied from 22 October 2020 to 1 December 2020, non-essential businesses were required to prohibit or significantly restrict customers from accessing their business premises. Higher and further education providers were however allowed to have an onsite presence where such education activities could not be held remotely.

Language schools may have been eligible to register and claim for CRSS during this period where all the qualification criteria were met. In determining whether the eligibility requirement relating to reduction in turnover is met, any turnover derived from a language school’s online activities during the period of restrictions must be taken into account.

There has been an easing of restrictions on businesses, with a phased move to Level 3 restrictions nationally from 1 December, with some restrictions easing from 4 December and 18 December respectively. A language school that was eligible to claim under CRSS up to 1 December could from that date open without having to prohibit or significantly restrict access to its business premises where it was considered necessary for educational reasons for students to attend in person. Any such language school would therefore cease to be eligible to claim under CRSS from that date. However, a business reopening after the period of restrictions, will be eligible to claim an additional week’s support under CRSS (referred to as a ‘restart week’) to assist the business in meeting the costs of reopening.

Any business that can reopen without having to prohibit or significantly restrict access to their business premises, but chooses not to reopen, will not be eligible to claim under CRSS.

Question No. 200 answered with Question No. 197.
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