Dáil Éireann Debate, Wednesday - 24 February 2021
190. Deputy Denis Naughten asked the Minister for Finance the supports under the various Covid-19 schemes that are available for a business that traded under a tenant in 2019 and 2020 (details supplied); and if he will make a statement on the matter. [9787/21]
View answerThe 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. Details of CRSS are set out 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 carry on a trade or trading activities, the profits from which are chargeable to tax under Case I of Schedule D. The trade must be carried on from a business premises that is located in a region subject to restrictions introduced in line with the Government’s ‘Living with Covid-19 Plan’, with the result that the business is required to prohibit or considerably restrict customers from accessing its business premises.
A person whose business activity consists of the leasing of a business premises would not meet the eligibility criteria for support under the scheme because any profits derived from such a business activity would generally not be regarded as trading profits that are chargeable to tax under Case I of Schedule D.
In circumstances where, upon a tenant terminating a lease to a business premises, a person commences to carry on a trade in 2020 from the business premises concerned, the person would be regarded as carrying on a “new business” for the purposes of the CRSS. A new business is a business that was established between 26 December 2019 and 12 October 2020 and such a business could qualify for the scheme where it meets the eligibility criteria.
In the case of a new business, any potential claim under the CRSS would be based on the average weekly turnover of the business in the period between the date of commencement and 12 October 2020. Where, however, the business did not operate in 2020, and therefore did not have any turnover between 26 December 2019 and 12 October 2020, the business would not be entitled to any payments under the scheme. The new business cannot use the turnover of the previous tenant for 2019 and 2020 as a basis for registering and availing of the scheme.
The Government has put in place a comprehensive range of measures to support businesses and workers during the pandemic, including the Employment Wage Subsidy Scheme (EWSS), the Pandemic Unemployment Payment (PUP), the COVID-19 Restrictions Support Scheme (CRSS), warehousing of tax liabilities and the waiver of commercial rates. Details of the wide range of COVID-19 support schemes for businesses are available on the Department of Enterprise, Trade and Employment’s website at https://enterprise.gov.ie/en/What-We-Do/Supports-for-SMEs/COVID-19-supports/.
