Dáil Éireann Debate, Wednesday - 19 January 2022
325. Deputy James Browne asked the Minister for Finance the position regarding the inability by a company (details supplied) to secure Covid restrictions support scheme support owing to loss of earnings; and if he will make a statement on the matter. [1222/22]
View answer352. Deputy John Brady asked the Minister for Finance if further changes will be made to the Covid restrictions support scheme to include new businesses which have been set up in the past three to six months that have been impacted by the recent public health restrictions; and if he will make a statement on the matter. [2106/22]
View answer354. Deputy Michael Lowry asked the Minister for Finance his plans to introduce a modified Covid restrictions support scheme for retail businesses that anticipate that their income will be subjected to a substantial loss in the first quarter of 2022 due to the ongoing Covid-19 pandemic; if such a modified scheme will be examined for retail businesses that can provide evidence that their income is down 30% or more at the start of 2022 compared to their last full year of trading accounts pre-pandemic; and if he will make a statement on the matter. [2169/22]
View answer356. Deputy Brendan Griffin asked the Minister for Finance if he will introduce a 10% turnover grant for new and existing businesses that had reduced opening hours due to public health restrictions and will not meet turnover requirements to qualify for the Covid restrictions support scheme; and if he will make a statement on the matter. [2271/22]
View answer359. Deputy Neale Richmond asked the Minister for Finance if he will consider extending the eligibility for the Covid restrictions support scheme to businesses that began trading after 26 July 2021; and if he will make a statement on the matter. [2293/22]
View answerI propose to take Questions Nos. 325, 352, 354, 356 and 359 together.
Covid Restrictions Support Scheme (CRSS) was introduced by Section 11 of the Finance Act 2020. The scheme 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 scheme is available to companies, self-employed individuals and partnerships who carry on a trade or trading activities, the profits of which are chargeable to tax under Case 1 of Schedule D, from a business premises that is subject to restrictions that prohibit or considerably restrict customer access.
From 20 December 2021, the Government introduced certain restrictive measures for businesses within the hospitality and indoor entertainment sectors. As part of these measures, an 8pm closing time has been imposed from 20 December 2021 to 31 January 2022. Businesses operating within these sectors, who would ordinarily operate evening and night-time trading hours, will be considered to be significantly restricted from operating for the purposes of the CRSS and will be eligible for support under the scheme where they meet the eligibility conditions. The Government have also agreed that the turnover reduction criteria will be increased from no more that 25% of 2019 turnover to no more that 40% of 2019 turnover.
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, or by public health guidance generally in force. 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 significantly restrict access to its business premises.
To qualify for the CRSS, a business must have tax clearance and have been established prior to 26 July 2021. Any business established after 26 July 2021 is not eligible for the scheme. Revenue has advised me that the business referred to in question (1222/21) was established in September 2021 and, as such, does not qualify for the CRSS.
Under the existing scheme any business established after 12 October 2020 was not eligible for CRSS. The Government have decided that new businesses established between 13 October 2020 and 26 July 2021 will now be eligible to apply for the scheme. In addition to the amendment of the turnover criteria, this is a significant extension of the CRSS. The CRSS is intended as a support for existing businesses and I have no plans to further modify the eligibility criteria of the CRSS.
The legislation provides businesses with the entitlement to appeal Revenue’s decision on CRSS eligibility to the independent Tax Appeals Commission (TAC), where they dispute the interpretation applied. If a business wishes to appeal Revenue’s decision that it is not entitled to the CRSS, it should do so within 30 days of the refusal notification.
The CRSS is just one of the Government supports to assist businesses impacted by COVID-19. Businesses not falling within the scope of the CRSS may be entitled to support under other measures put in place by Government, including the COVID Pandemic Unemployment Payment (PUP) and the Employment Wage Subsidy Scheme (EWSS). EWSS is an economy-wide scheme that operates across all sectors. As the Deputy may be aware, as announced on 9 December, it was decided that the enhanced rates of support which were due to end on 30 November 2021 would be extended for a further two months until end-January 2022. On 21 December, it was decided on foot of the restrictions I have outlined above, that the EWSS would reopen for certain businesses who would otherwise not be eligible for the support. Businesses that previously registered for EWSS and received a payment in compliance with the scheme have the opportunity to re-qualify for the scheme where they meet certain conditions. Broadly, the business must experience a 30% reduction in turnover, or customer orders during a particular reference period and have tax clearance.
Finally, it is my intention that the legislative aspects associated with the revised arrangements for CRSS and EWSS, outlined above, will be addressed by primary legislation in the coming weeks. In the meantime, the Revenue Commissioners are operating the revised arrangements on an administrative basis pending the legislation.
