I propose to take Questions Nos. 320 and 322 together.
Section 28B of the Emergency Measures in the Public Interest (Covid-19) Act 2020 provides for the Employment Wage Subsidy Scheme (EWSS) which is an economy-wide enterprise support for eligible businesses in respect of eligible employees.
As the Deputy will be aware, eligibility to EWSS is based on the employer demonstrating that its business is likely to experience a 30% reduction in turnover or orders during a specific reference period and that this disruption to business is caused by the Covid-19 pandemic. In addition, the business must also have tax clearance.
Since the introduction of the scheme, each employer availing of the scheme must carry out a self-review of its business circumstances at the end of each month and if it is manifest to the employer that it no longer meets the eligibility test for qualification for the scheme, then the employer must immediately cease claiming wage subsidy payments. For July to December 2021, employers provide to Revenue details of this eligibility review on a monthly Eligibility Review Form (ERF), filed through ROS.
Revenue’s administration of the scheme is on a self-assessment basis, with employers claiming the subsidy through their payroll submission, by including a marker on payslips where the subsidy is being claimed. If employers subsequently determine they are not eligible, or they wish to voluntarily remove themselves from the scheme, they can do so by removing the marker from the submissions and repaying the subsidies claimed, without contacting Revenue.
I am advised by Revenue that it undertakes a multi-faceted approach to compliance checks to safeguard the integrity of the EWSS. This includes real time risk-based checking of submissions and cross-referencing claim data against other Revenue data sources to identify anomalies or trends requiring attention. The real time checking procedures are supported by engagement with employers, to facilitate timely resolution of issues, and to ensure employers claim the correct EWSS entitlement, or cease claiming where they no longer have an entitlement.
I am further advised that Revenue is also carrying out a risk-focused follow-up program of compliance interventions. In most instances, agreement is reached and any EWSS overpaid is recouped or the liability is warehoused under the Debt Warehouse Scheme. Where issues are identified and agreement is not reached, Revenue will raise a notice of assessment which is collectible in the same manner as any outstanding tax. Employers have the right to submit an appeal to the Tax Appeals Commission (TAC) within 30 days of the assessment. There are currently 60 assessments raised for the amount of €5.1 million of which 4 have been appealed for the amount of €1million.
Revenue have audited 212 registered companies under the EWSS via their compliance programme to 31 December 2021. Revenue have advised that 77 of these audits have been finalised, yielding almost €1.5 million and 135 are ongoing. An additional 5,594 registered employers have been subject to a compliance check under the compliance programme to 31 December 2021. Overall, Revenue has finalised EWSS related interventions with 3,500 employers, recouping €19.2 million, which equates to 0.3% of the total subsidy paid. There are further compliance checks with 2,306 employers ongoing, which will be finalised in due course.
Finally, I am advised by Revenue that since the scheme commenced, a total of 16 employers advised Revenue they were voluntarily removing themselves from the scheme, 9 of whom withdrew and fully repaid nearly €21 million and 7 withdrew and partially repaid just over €4.5 million. A total of 402 employers have repaid in full all subsidies claimed, totalling approximately €52 million with an additional 3,331 making partial repayments totalling approximately €54 million. This figure includes employers who deemed themselves ineligible as part of the monthly eligibility review process and repaid subsidy monies in line with the scheme requirements. Employers were not required to indicate the reason for a repayment, therefore Revenue is not in a position to provide a breakdown between those employers who repaid due to ineligibility, arising from employer self-assessment or a compliance check and those who voluntarily repaid.
Due to taxpayer confidentiality as enshrined in Section 851A of the Taxes Consolidation Act 1997, Revenue are not in a position to provide the names of employers who have paid back subsidy payments.
