Dáil Éireann Debate, Tuesday - 14 July 2020
313. Deputy Johnny Guirke asked the Minister for Finance if his attention has been drawn to the fact that the Revenue Commissioners are issuing letters to many SMEs which claimed the Covid-19 restart grants informing them that their business accounts will be audited; the reason for such actions; and if he will make a statement on the matter. [15881/20]
Amharc ar fhreagraThe Temporary Wage Subsidy Scheme (TWSS) is a vital support to maintaining employment during the public health restrictions necessitated by the COVID-19 pandemic. To date, the scheme has provided almost €2 billion in support to over 61,000 employers in respect of some 600,000 employees. There are approximately 405,000 employees currently receiving support through the scheme. The TWSS is available to employers across all sectors, including SMEs.
The Emergency Measures in the Public Interest (COVID-19) Act 2020 places the administration of the TWSS under the care and management of Revenue. This responsibility includes ensuring that the very significant investment of public funds is properly allocated to eligible employers and employees. In the exercise of this important role, Revenue is conducting a programme of compliance checks on all employers availing of the scheme to confirm that they meet the eligibility criteria and, crucially, that the monies involved are being properly paid out to employees. These compliance checks, of which approximately 5,000 have already issued to employers, will be completed over the next few months.
In order to verify TWSS eligibility, Revenue is asking employers to summarise the impact of the COVID-19 restrictions on their business, the basis on which they reasonably anticipated a reduction of 25% or more in their turnover or in customer orders during Quarter 2 of this year, and whether the expected level of reduction actually occurred. Where a business had a reasonable basis for projecting the 25% decrease in turnover, but ultimately suffered a lesser reduction, Revenue will require it to exit the scheme on a prospective basis only.
However, where a business was clearly not eligible for the scheme or failed to pay the correct level of subsidy to its employees, or abused the scheme in any other way, there will be a requirement to repay the funds received. Any identified abuse of the TWSS will also lead to a more in-depth examination of the employer’s overall tax position. Revenue is also requesting copies of employee payslips from employers as part of the compliance checks to ensure that employees are being fairly treated and TWSS funds are being paid out as intended.
Revenue has confirmed that these compliance checks are not tax audits of business accounts as suggested by the Deputy. Revenue has also advised me that providing this basic information should not impose a significant overhead or difficulty for employers. However, where any employer needs further time to produce the documentation, Revenue has assured me that it will be granted once the employer makes contact to confirm when the information will be available.
Finally, Revenue has confirmed that it has already received prompt and satisfactory replies from many of the employers contacted to date.
