Dáil Éireann Debate, Tuesday - 27 July 2021
377. Deputy Fergus O'Dowd asked the Minister for Finance if a reply will issue to correspondence (details supplied) in relation to the urgent need for clarity regarding the Covid restrictions support scheme; and if he will make a statement on the matter. [39957/21]
View answerI understand that a reply has issued to the correspondence in question.
The Covid Restrictions Support Scheme (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. The legislative basis for the scheme is 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, are published on the Revenue website.
A qualifying business must operate from a business premises located in a region that is subject to restrictions introduced in line with the Government’s Living with COVID-19 Plan. For the purposes of the scheme, a business premises is defined as a building or other similar fixed physical structure from which a business activity is ordinarily carried on.
I am advised by Revenue that the business in question was in receipt of the CRSS from 13 October 2020 to 4 July 2021. The business should have ceased claiming the CRSS from 17 May 2021 when Government restrictions on non-essential retail were lifted. Following a review of its continued usage of the scheme, I understand that Revenue determined that it no longer meets the eligibility criteria and stopped the payments.
Revenue has engaged directly with the business to explain how the CRSS operates, to clarify why it no longer meets the eligibility criteria for the scheme and to confirm that the overpaid amount would be required to be repaid in due course. However, Revenue accepts that repayment of the amount owed as a single payment would cause further financial difficultly for the business. Given the circumstances, Revenue will add the amount owed to its warehoused debt even though the Debt Warehousing Scheme does not specifically provide for CRSS related liabilities. Revenue has also confirmed that it will continue to engage with the business as the need arises.
If the business disagrees with Revenue’s determination that it is not eligible for the scheme, it has the right to appeal the decision to the independent Tax Appeals Commission (TAC) within 30 days of receipt of the determination notice. Information and guidance on how to make an appeal to the TAC is available at www.taxappeals.ie.
