Dáil Éireann Debate, Wednesday - 27 January 2021
184. Deputy Darren O'Rourke asked the Minister for Finance the number of persons who availed of the stay and spend scheme up to 31 December 2020; the value of receipts uploaded to the scheme; the expected cost to the State of the scheme in 2020; and if he will make a statement on the matter. [3583/21]
View answer195. Deputy Catherine Murphy asked the Minister for Finance the cost to date of the stay and spend initiative in terms of the amount of tax credits availed of under the scheme; and the amount spent on administering the scheme. [3839/21]
View answer196. Deputy Catherine Murphy asked the Minister for Finance the amount spent to date on marketing and advertising the stay and spend initiative as it relates to Fáilte Ireland; and if he will make a statement on the matter. [3840/21]
View answer225. Deputy Steven Matthews asked the Minister for Finance the details regarding the uptake of the stay and spend scheme to date; and his plans to extend the existing deadline for the scheme or reintroduce a similar one to incentivise domestic travel and spending once it is safe to do so. [4290/21]
View answerI propose to take Questions Nos. 184, 195, 196 and 225 together.
The purpose of the Stay and Spend Tax Credit scheme is to provide targeted support to businesses within the hospitality sector whose operations are likely to be most affected by continued restrictions on public health grounds. The scheme was developed at a time when there appeared to be a steady downward trend in infection rates, and there was an expectation that the re-opening of the economy could be sustained uninterrupted.
In order to avail of the tax credit, taxpayers are required to upload a copy of their receipt(s) for qualifying expenditure to the Revenue Receipts Tracker and then make a formal claim for the credit when submitting their annual Income Tax Return.
Under the scheme, a claim may be made in relation to qualifying expenditure incurred between the period 1 October 2020 and 30 April 2021. Broadly, qualifying expenditure includes expenditure on either holiday accommodation or “eat in” food and drink, with a minimum expenditure amount of €25 per transaction being required. As at 21 January, 3,125 service providers have registered to participate in the scheme.
Since 1 October 2020 when the Stay and Spend scheme commenced, a total of 43,980 receipts have been uploaded to the Revenue Receipts Tracker, as at 20 January 2021. The expenditure recorded on these receipts amounts to €6,971,859 and the potential tax cost is €1,394,372, assuming all such expenditure is claimed and qualifies in full for tax relief.
Claims relating to qualifying expenditure incurred in the period from 1 October 2020 to 31 December 2020 can be made when an individual is submitting his/her 2020 Income Tax Return, which is now available for submission. As at 18 January 2021 a total of 4,441 taxpayers Income Tax Returns for 2020 have included the Stay and Spend credit. These claims relate to €1,527,149 of the qualifying expenditure recorded on the Revenue Receipts Tracker to date and the tax cost of same amounts to €305,430. However, as the filing deadline for the 2020 Income Tax Return is not until 31 October 2021, information on the total number of claims and cost for the 2020 year of assessment will not be available until after the filing date and the returns have been processed. Subsequent to claims being made in respect of this scheme and any other relief or deduction, verification of such reliefs and deductions forms part of Revenue’s comprehensive risk assessment programme.
I am advised by Revenue that the administration of the Stay and Spend scheme is carried out as part of Revenue’s ongoing work, using existing resources. In addition, no costs have been incurred by Revenue or by my Department in respect of the marketing and advertisement of the scheme. As regards the question asked by Deputy Murphy, the amount spent to date on marketing and advertising the scheme as it relates to Fáilte Ireland is a matter for the Minister for Tourism, Culture, Arts, Gaeltacht, Sport and Media.
Revenue’s Information Technology Division was required to develop a number of technical components to support the new Stay and Spend scheme. This included the development of a new Stay and Spend interface within the Revenue Receipts Tracker App. Revenue was already in the process of redeveloping and upgrading the technology of its mobile app during the second quarter of 2020, and the addition of Stay and Spend functionality into the Revenue Receipts Tracker App was a small extension to the work that was already underway. The total cost of the redevelopment and technology upgrade of Revenue’s mobile app was €98,000, a small portion of which is attributable to the Stay and Spend scheme. In addition, Revenue’s Information Technology Division developed a new registration process for service providers and an extension to the existing Income Tax Return to pre-populate it with the receipts uploaded through the Revenue Receipts Tracker App, and to allow individuals to claim the Stay and Spend tax credit through their annual return. The total cost of these developments was €140,000.
As mentioned already, the Stay and Spend scheme was devised at a time when there was an expectation that the re-opening of the economy could be sustained uninterrupted. Unfortunately, this has not been the case and, thus far, with the exception of some short periods, public health restrictions have had the effect of impeding the operation of the incentive as originally envisaged.
Stay and Spend is due to operate until 30 April but the flexibility exists for me to extend its operation in 2021 beyond that date (to end 2021). It is too early as yet to take definitive decisions in that regard. Much will depend on how circumstances unfold in the months ahead. As I have said before, I will keep an eye on how matters develop and the role that the scheme might play and consider if any changes need to be made.
Finally, it is important also to recall that Stay and Spend shouldn't be viewed in isolation from the other measures put in place to support businesses generally and the hospitality sector in particular. The VAT change; the rates waiver; the wage support scheme and its application to new or seasonal staff; and other Government measures all play a part in helping the hospitality sector cope with the challenges it faces.
