Dáil Éireann Debate, Thursday - 3 March 2022
253. Deputy Fergus O'Dowd asked the Minister for Finance if he will urgently review the case for a business (details supplied) in respect of its employment wage subsidy scheme eligibility given that the company is facing closure following the latest eligibility decision that was in contrary to their earlier acceptance on the scheme; and if he will make a statement on the matter. [12307/22]
View answerThe Employee Wage Subsidy Scheme (EWSS) is operated on a self-assessment basis with the onus on applicants to satisfy themselves that they fully meet the eligibility criteria for the scheme as set down in the legislation and to self-declare to Revenue that they correctly qualify. The eligibility conditions for the scheme, requires that a business has tax clearance and that a minimum 30% decline in business turnover/orders has occurred due to the impact of COVID-19.
The eligibility criteria set down in the legislation provides that where a business started trading in 2019, but not later than 1 November 2019, it must be able to demonstrate at least a 30% reduction in either turnover or customer orders by comparing the trading months in 2019 to the equivalent months in 2021. To be considered a ‘new business’ for the purpose of EWSS, a business should have started trading from or after 1 November 2019. Changes to a business model after 1 November 2019 does not constitute a new business for the purpose of EWSS.
The legislation enacted by the Oireachtas places the administration of the wage subsidy schemes under the care and management of the Office of the Revenue Commissioners.
I understand that a comprehensive review of the case in question was carried out by Revenue and that the outcome of this was conveyed to the agents of the employer by letter on 15 February 2022.
According to Revenue’s records, the business operated prior to 1 January 2019 and as such is required to use the period 1 January 2019 to 31 December 2019 as its reference period to determine if a 30% reduction in turnover or customer orders occurred in 2021, for pay dates on or between 1 July 2021 and 30 April 2022. The fact that the business adapted its trading model after 1 November 2019 does not change this requirement.
