I propose to take Questions Nos. 37, 44, 45, 47, 51 and 56 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. Similarly caterers or event organisers who provide services away from their business premises are not eligible for the scheme.
Businesses whose trading profits are not chargeable to tax under Case I of Schedule D do not meet the eligibility criteria for CRSS.
A charity shop that is not chargeable to tax under Case I of Schedule D will not qualify for CRSS. This includes a charity shop 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.
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.
Deputies will be aware that the Dáil yesterday discussed the draft Taxes Consolidation Act 1997 (Covid Restrictions Support Scheme) (Percentage Adjustment) Order 2021. This order provides for an increase in the levels of payment to 20% of average 2019 turnover up to €20,000 and to 10% of turnover above that amount for the three weeks beginning 21st and 28th December and 4th January. I have no other plans to vary the rates of payment.
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 continue to work with Ministerial colleagues to ensure that appropriate supports are in place to mitigate these effects.