Dáil Éireann Debate, Wednesday - 2 June 2021
94. Deputy Alan Dillon asked the Minister for Finance the penalties a business will face that has received the Covid restrictions support scheme payment to date but has decided not to reopen the business and return to work as a PAYE employee; and if he will make a statement on the matter. [29947/21]
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 the 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.
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 significantly restrict customers from accessing its business premises. A business must be able to demonstrate that, because of the Covid restrictions, the turnover of the business in the period for which the restrictions are in operation, and for which a claim is made, will be no more than 25% of an amount equal to the average weekly turnover of the business in 2019 (or average weekly turnover in 2020 in the case of a new business) multiplied by the number of weeks in the period for which a claim is made.
In order to make a claim under the scheme, a business must meet other eligibility criteria, including the requirement that the business would, but for the Covid restrictions, carry on the business activity and intends to carry on the activity when the Covid restrictions cease to be in operation. In circumstances where a business ceases to be subject to Covid restrictions which require it to prohibit or significantly restrict customers from accessing its business premises, and the business chooses not to reopen, it will not qualify for payments under the CRSS.
In addition, if during a period of Covid restrictions, a business that is significantly restricted from operating (and which would otherwise be eligible to claim under the CRSS) decides to cease trading, including in circumstances where the business owner ceases trading to pursue employment, the business concerned will no longer qualify for the CRSS. This is because the business will no longer meet the requirement that it intends to carry on the business activity when the Covid restrictions cease to be in operation. Any amounts claimed by a business that does not meet all the requirements to make a claim under the CRSS should be repaid to Revenue or will be recouped by Revenue through the relevant mechanisms contained in the CRSS legislation.
There is no provision in the CRSS legislation to recoup monies received by a business for a claim period where, in that claim period, the business held a genuine intention to trade after the cessation of Covid restrictions and the business met all other eligibility criteria for making a claim under the CRSS.
