Dáil Éireann Debate, Wednesday - 27 January 2021
202. Deputy Brendan Griffin asked the Minister for Finance if he will review the anomaly (details supplied) that is preventing businesses from qualifying for the Covid restrictions support scheme payment; and if he will make a statement on the matter. [3887/21]
View answer205. Deputy Brendan Griffin asked the Minister for Finance if he will review the anomaly (details supplied) that is preventing businesses from qualifying for the Covid restrictions support scheme payment; and if he will make a statement on the matter. [3911/21]
View answer209. Deputy Niall Collins asked the Minister for Finance if an organisation (details supplied) can qualify for the Covid restrictions support scheme; and if he will make a statement on the matter. [4017/21]
View answer215. Deputy Mary Lou McDonald asked the Minister for Finance if his attention has been drawn to the fact that there a number of businesses who do not qualify for the Covid restrictions support scheme as they do not have a fixed premises although they meet all other criteria; if he plans to review the criteria in order that businesses can access support; and if he will make a statement on the matter. [4104/21]
View answer220. Deputy Richard Bruton asked the Minister for Finance if his attention has been drawn to the fact that childcare providers that have charitable status cannot avail of the Covid restrictions support scheme; and if he has considered any alternative support for such providers. [4161/21]
View answer227. Deputy Brendan Howlin asked the Minister for Finance if he will review the supports available under the Covid restrictions support scheme particularly regarding wholesalers that cater for the hospitality industry; and if he will make a statement on the matter. [4316/21]
View answerI propose to take Questions Nos. 202, 205, 209, 215, 220 and 227 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 Finance Act 2020 and detailed operational guidelines, which are based on the terms and conditions of the scheme as set out in the legislation, have been published on the Revenue website at:
https://www.revenue.ie/en/corporate/press-office/budget-information/2021/crss-guidelines.pdf.
To qualify under the scheme a business must, under specific terms of the Covid restrictions, be required to either prohibit or significantly restrict, customers from accessing their business premises to acquire goods or services, with the result that the business either has to temporarily close or to operate at a significantly reduced level. For the purposes of CRSS, a qualifying “business premises” is a building or other similar fixed physical structure in which a business activity is ordinarily carried on.
It is not sufficient that the trade of a business has been impacted because of a reduction in customer demand as a consequence of Covid-19. The scheme only applies where, as a direct result of the specific terms of the Government restrictions, the business is required to either prohibit or restrict access to its business premises. Where a business supplies goods or services to businesses in the hospitality industry which, under the specific terms of the Covid restrictions, are required to prohibit or significantly restrict customers from accessing their business premises (for example pubs and restaurants), it will not result in the supplier business being eligible to make a claim under CRSS. Each business must meet the qualification criteria in their own right.
Businesses whose trading profits are not chargeable to tax under Case I of Schedule D do not meet the eligibility criteria for CRSS.
A childcare provider that is not chargeable to tax under Case I of Schedule D will not qualify for CRSS. This includes a childcare provider that has been granted charitable tax exemption status because it is exempt from paying corporation tax or income tax on any income received where the income is used for its main charitable purpose.
A sports club that has been granted a sports body exemption is exempt from paying Corporation Tax or Income tax on any income received where the income is used for the purposes of promoting the game or sport. Such income would include income from a bar. A sports club with such an exemption is not chargeable to tax under Case I of Schedule D in respect of its income and therefore does not qualify for CRSS. I am advised by Revenue that a list of sports bodies that have been granted an exemption is published on their website and Ballybrown GAA Club is on the list. On that basis, it does not qualify for CRSS.
An approved sports body is not exempt from Value Added Tax (VAT) or payroll taxes and may be entitled to financial support under other measures put in place by the Government, including the Employment Wage Subsidy Scheme (EWSS). These clubs may also be eligible under the Debt Warehousing Scheme to ‘park’ certain VAT and PAYE (Employer) liabilities and any excess payments received under the Temporary Wage Subsidy Scheme (TWSS).
The CRSS is just one of the Government’s supports to assist businesses impacted by COVID-19. Businesses who are not eligible for CRSS may be entitled to alternative supports put in place by the Government, including the COVID Pandemic Unemployment Payment (PUP) and the Employment Wage Subsidy Scheme (EWSS). Businesses may also be eligible under the Debt Warehousing Scheme to ‘park’ certain VAT and PAYE (Employer) liabilities, excess payments received under the Temporary Wage Subsidy Scheme (TWSS), outstanding balances of self-assessed Income Tax for 2019 and Preliminary Tax for 2020. I have no plans to change the eligibility criteria for the CRSS.
The purpose of the CRSS is to provide additional support to the businesses who have had to close temporarily or significantly restrict access to their premises as a direct result of public health Regulations. The Government will continue to assess the effects of the Covid-19 pandemic on the economy and I will continue to work with Ministerial colleagues to ensure that appropriate supports are in place to mitigate these effects.
