COVID-19 PQ Responses 5Th May 2020

COVID-19 PQ Responses 5th May 2020

Prepared by Corporate Affairs, Department of Finance www.gov.ie/finance

Topic – Temporary Wage Subsidy Scheme

FIN/COVID/4.849/20 by Brid Smith T.D. To publish the name of all companies who availed of the wage subsidy scheme and the number of employees in each firm for which payments were made

Section 28 of the Emergency Measures in the Public Interest (Covid-19) Act 2020 provides the legislative basis for the Temporary Wage Subsidy Scheme (TWSS). Subsection (8) of that section requires Revenue to publish on its website the names and addresses of all employers to whom a temporary wage subsidy has been paid. Revenue will publish a list of the names and addresses of qualifying employers who make submissions for subsidy refunds. The register of employer participants will be available on the Revenue website after the scheme has finished.

I should also add that Revenue has made statistics on the TWSS available at: https://www.revenue.ie/en/corporate/information-about-revenue/statistics/number-of- taxpayers-and-returns/covid-19-wage-subsidy-scheme-statistics.aspx.

The statistics cover the operation of the TWSS to 30 April. I am advised that Revenue is continuing to undertake further analysis of TWSS and will publish updated and expanded statistics on a regular basis. These updates will be published at the link noted above.

Topic – Temporary Wage Subsidy Scheme

FIN/COVID/4.064/20 by Fergus O'Dowd T.D. To ask the Minister for Finance if he will amend wage subsidy scheme and/or associated regulations in order for the below situations to be rectified and safeguard employers and employees under the Covid Wage Subsidy Scheme.

I hope this finds you well, I really do appreciate you taking the time to look at this. I have a sent a similar letter to Paschal O’Donohoe with more specific information relating to the actual businesses and clients affected in my own case. I would really appreciate if you could add your voice to this issue, which affects businesses and will, in reality, close businesses across the country if not rectified.

Personally, I own an accountancy practice in (detail supplied). I have 5 full time employed including myself. It’s a challenging time for everyone and businesses need all the support possible to survive. The issue is as below…

Revenue are rejecting applications to the Temporary COVID-19 Wage Subsidy Scheme based on payroll returns for Jan20 or Feb20 being submitted late (even 1 day late).

As an example, the payroll for Feb20 is due to be submitted to Revenue before the 15th of Mar. If this was submitted on the 16th of Mar Revenue are rejecting the application for the scheme. They are not accepting any appeals that I am aware of in relation to this. I know from dozens of colleagues this is an issue across the board.

I know the purpose of the scheme is keep people in employment and keep the link with employers. I believe Revenue’s approach, on this particular issue, is against the spirit of the scheme. Late submitted payroll can easily be verified through bank statements / payslips / employees’ records / previous months, etc. A lot of businesses have the same employees for years… and would receive thereabouts the same pay each month.

I am requesting that this issue is raised directly with the minister. Please do this on behalf of small business across Ireland. I would really appreciate if you could let me know if there is any feedback.

Many thanks for your help.

Wishing you and your family well during this time.

The Government’s priority in so far as the Temporary Wage Subsidy Scheme (TWSS) is concerned was, and is to ensure that all employers experiencing significant negative economic disruption from COVID-19 can register for and start to receive payment quickly. The overarching ambition of the scheme is to ensure the key relationship between employers and employees is maintained to the greatest extent possible so that businesses can restart operations quickly once the crisis has passed.

The TWSS was legislated for in section 28 of the recently enacted Emergency Measures in the Public Interest (Covid-19) Act 2020. Of necessity, the underlying legislation and the scheme itself were developed very quickly, having regard to the urgent Government objective of getting much needed urgent assistance to employers and employees, where businesses have been seriously affected by the pandemic and the necessary restrictions introduced to fight the spread of the Covid-19 virus. It must be accepted that the TWSS simply cannot be adapted to meet the particular circumstances of individual employers or employees.

In the context of the compelling need for immediate implementation of the TWSS, the scheme necessarily had to build on data returned to Revenue through its real-time PAYE system. The key criteria for eligibility for the scheme, as prescribed in the underlying law, are that –  the business is suffering significant negative economic impact due to the pandemic,  the employees were on the payroll at 29 February 2020, and  the employer had fulfilled its PAYE reporting obligations for February 2020 by 15 March 2020. The latter two criteria were particularly designed to prevent abuse and exploitation of the scheme.

Both I and Revenue have received numerous representations from and on behalf of employers who have not met their PAYE reporting obligations for February 2020. Many of the representations have indicated that employers had genuine reasons for missing the 15 March 2020 deadline, that those employers are generally compliant and that they are anxious to keep the link with their employees. Some employers have confirmed that they can produce records, bank statements, wage slips, etc., to show that they had the employees on payroll at 29 February 2020 and had paid them the relevant wages.

 the employees in respect of whom the wage subsidy is claimed were included on the employer’s payroll on 29 February 2020,  the February 2020 payroll submissions were submitted to Revenue before 1 April 2020, and  the payroll submissions for all previous months were submitted to Revenue before 15 March 2020. Where a business qualifies for the TWSS under the revised criteria, the wage subsidies under the scheme will be payable for eligible employees in respect of payroll submissions made on or after 24 April 2020, with a pay date on or after 24 April 2020, and cannot and will not be made retrospective.

Further information is available at https://www.revenue.ie/en/corporate/communications/documents/twss-extended-deadline- feb2020-payroll-submissions.pdf

Finally, any queries in relation to the operation of the scheme should be submitted via Revenue’s myEnquiries system.

Topic – Mortgages

FIN/COVID/4.792/20 by Pearse Doherty T.D. To ask the Minister for Finance what correspondence has the Minister had with AIB regarding the application of additional interest on mortgage loans whereby the mortgage-holder has availed of a three month mortgage break as a result of COVID-19, and if he will make a statement on the matter;

On 18 March 2020, I met with the five CEOs of the retail banks operating in Ireland and with Banking and Payments Federation Ireland (BPFI) to discuss the proposed actions by the banks. The measures announced utilise the banks’ own resources and Central Bank of Ireland monetary and regulatory policy actions to assist customers. My Department has also and continues to liaise with the Central Bank of Ireland to advance ongoing work that is taking place to assist customers who are impacted by COVID-19. Discussions with Credit Service Firms and with those non–bank lenders who provide mortgages have also taken place with the Banking and Payments Federation of Ireland.

Topic – Mortgages

FIN/COVID/4.561/20 by Roderic O’Gorman T.D. To ask the Minister for Finance if he is aware whether the pillar banks are undertaking a major review of their mortgage loanbook and could this have an impact on homeowners holding mortgages following the end of the three month mortgage holiday and will he make a statement on the matter. The Irish economic landscape, in common with elsewhere, has changed considerably in recent months. To chart our way out of this unprecedented situation as country, we have developed an economic recovery plan that lays out the necessary measures to restore full employment and outline the steps needed to get our country back on track in the period ahead. This plan is based on detailed analysis by officials in every government department and across the system.

This process is replicated right across our economy, as businesses big and small review every aspect of their operations, seeking to chart their way safely out of this crisis.

In this respect, banks are no different. They were already subject to significant regulatory oversight from the Central Bank and European authorities before this crisis began. As such they would have been reviewing their mortgage loan books on an ongoing basis anyway. However, the recent economic shocks will certainly have intensified the depth and granularity of these reviews.

My officials have engaged and will continue to engage extensively with the Banking and Payments Federation (BPFI) and the banks directly in relation to supports for personal and business mortgage customers affected by the COVID-19 crisis. As you will be aware, the BPFI last week announced an extension of the COVID-19 mortgage break from three to six months. This pro-active and pragmatic approach from the sector is to be welcomed and should help ensure that customers in difficulty are given some time and space to get back on their feet.

Officials in my department continue to be alert to issues raised, including directly by the public, and these inform the department’s ongoing engagement process with banks and policy formation. All the banks, including those in which the state has a shareholding, have continued to evolve and expand the supports they have available and I would expect that this process continues.

Topic – Hospitality Sector

FIN/COVID/4.651/20 by Brendan Smith T.D. "To ask the Minister for Finance if he will give urgent consideration to the issues raised by an Association – (details supplied) – if he will ensure that adequate support is provided by his Department and/or by the Agencies under the remit of his Department and if he will make a statement on the matter.

DETAILS: Press Release

9 out of 10 Restaurants face permanent closure (details supplied ) Launch COVID Crisis Recovery Plan: 9 Point Recovery Plan for the Irish Restaurant Sector. 90% of Restaurants currently Closed in Ireland with 120,000 Jobs at Risk in the months ahead Today the (details supplied) the official trade body for the sector has launched its 9-point plan to help save and recover the restaurant industry with over 90% of Restaurants currently Closed and 120,000 Jobs at permanent risk in the next two months.

Speaking today, (details supplied CEO, said, “Our plan which is the only viable solution for restaurants is on the desks of Ministers & Departments. We are seeking urgent action to save and recover our industry as 9 out of 10 Restaurants face permanent closure in the months ahead without urgent action” Since the initial decline in restaurant customers in late February the (details supplied) has engaged at local level with its 3000 strong membership of Restaurants, Gastropubs, Cafés and eateries and listened to their asks. The asks of this recovery plan have been communicated to various governmental departments, TDs, Senators and Fáilte Ireland over the last number of weeks as we all seek to ensure the Irish Restaurant and Hospitality Industry recovers and strengthens in the coming months ahead, which will not be without their challenges.

European Solution The (details supplied) is a member of Hospitality Europe (HOTREC) which is the umbrella association of Hotels, Restaurants, Cafés & similar establishments in Europe. HOTREC brings together 45 Member associations in 33 countries and is the voice of the European hospitality industry. Engagement at a European level is also vital and the RAI and its counterparts in Europe have sought a unified approach to the recovery of the restaurant and hospitality sector at a European level. Such engagement will further strengthen the case for European led grant aid support through the Irish Government to the devastated Restaurant and Hospitality Sector.

9-point Recovery Plan - Immediate supports needed for Restaurants & Hospitality

1. VAT: 0% VAT Rate for Tourism & Hospitality for period of crisis & for 12 months thereafter & then revert to 9% for period of 5 years

2. Rents: Legislation to protect commercial lease holders & any mortgage holiday or write offs to be passed on to the lease holder. A scheme like France called the 60/20/20. Government supplements Rent by 60%, Landlord reduces rent by 20% & Commercial Tenant pays 20% for 12 months of the crisis

3. Banks: No banking fees for hospitality until a vaccine is found. ECB interest rates on loans & a moratorium on existing loan repayments

4. Insurance: Pay-outs under business interruption & notifiable disease clauses. Forbearance, in either rebates or extensions to policies for period of closure, & no suspension of cover whilst businesses are closed

5. Wage Supports: Continued supports for Restaurants & Hospitality until vaccine is found. Support for people over the age of 66 & seasonal workers in the PUP & Wage Subsidy Schemes

6. Liquidity / Grants: A DBEI package of grants for businesses to cover outgoings in the first six months following the return of normal trading

7. Commercial Rates: Rates write off for Restaurants & Hospitality for the full crisis period until a vaccine is found

8. Utilities: Ban on utility providers cutting off services & demanding payments when business are closed. Review of standing charges for closure period.

9. Outdoor Seating: Waiver of licences for outdoor tables and chairs for 1 year to enable businesses to reopen and adapt to social distancing using outdoor spaces"

I wish to advise the Deputy that a response to each item is included below. Where a matter is not typically dealt with by my Department, I have sought input from Ministerial colleagues as appropriate.

Response to Point 1 The Government is fully aware of the unprecedented impact that the coronavirus is having on business and people’s livelihoods. In this regard a range of measures have been introduced to

provide income support to those who need it while also giving confidence to employers to retain the link with employees so that when this crisis passes - and it will pass – our people can get back to work as quickly and seamlessly as possible.

In addition to current support measures, my officials are examining a range of possible measures to ensure that the economy is in a position to recover rapidly while maintaining a stable tax base.

Response to Point 2 Many companies have had to close their businesses and / or premise(s) due to COVID-19 restrictions inhibiting sales of goods and services and therefore income. I am aware that some businesses, particularly in the retail sector, are concerned that some landlords are continuing to insist on the payment of rents and leases as normal. But these are not normal times. While the issue of commercial rents is primarily a contractual matter for the parties involved, the Government has urged landlords to demonstrate forbearance in these extraordinary times and to play their part, as everyone must, in helping the country through this difficult period. It is not only a matter of burden-sharing but also one which makes business sense – it is in landlords’ interests that their tenants remain viable businesses into the future. I understand that Irish Institutional Property, a commercial property representative group, has publicly stated that tenants should negotiate and landlords will engage and I would encourage such engagement. We must recognise that some landlords also have debt repayment obligations as well as other ongoing costs, e.g. insurance, that need to be paid. The latitude of landlords will also be influenced by the flexibility given to them by their bank or lender. I, as Minister for Finance, raised the broader issue of rents in meetings with the pillar banks. I referenced this in my announcement of 18th March concerning an arrangement with the banks to the effect that any landlord who has agreed a deal with the banks on foot of the arrangement will be expected to pass the benefit on to their tenants.

Response to Point 3 Irish lending institutions, including those in which the State has a shareholding, are independent commercial entities and therefore the imposition of bank fees and charges is a commercial decision for the bank involved. Under section 149 of the Consumer Credit Act, 1995, the responsibility for the regulation of bank fees lies with the Central Bank of Ireland. However, I welcome the decision taken by a number of banks to defer planned increases in their fees. You will be aware that the banking industry has put in place a number of measures to help their personal and business customers which are being impacted by the COVID-19 crisis, and this includes payment break for loans and mortgages of up to three months. However, in these difficult times it is important, insofar as is possible, that business and households who can will continue to meet and pay their commitments, taxes and bills on time so that a certain level of economic activity can be maintained and that resources will be available to assist our citizens that need assistance and support at this difficult time. Government has announced a range of measures to assist companies deal with the consequences of the COVID-19 restrictions, and to ensure that they have access to sufficient liquidity. These include tax measures, as well as loan schemes, to assist SMEs.

On April 8 a range of further measures were announced, including through the Strategic Banking Corporation of Ireland (SBCI). An additional €250 million in funding is to be made available to the SBCI COVID-19 Working Capital Scheme, which also may include optional interest only repayments at the start of the loan period. The SBCI also has existing supports in place that can help SMEs, including the Credit Guarantee Scheme, which has current lending capacity for SMEs. The Credit Guarantee Scheme supports lending through the provision of an 80% Government Guarantee for qualifying businesses. Microfinance Ireland has also introduced the COVID-19 Business loan which

provides loans of between €5,000 and €50,000 for micro-SMEs affected by COVID-19, these loans include a 6 month interest and repayment free period, with the interest rate reduced from 7.8% to 4.5%.

Response to Point 4 I will now address point 4 regarding insurance. I am aware that there have been many concerns expressed about how the insurance industry is responding to the needs of its business policyholders in these difficult times, in terms of honouring business interruption claims and also with regard to whether forbearance and other flexible measures are being offered to them. The Deputy should note that I and my officials have been engaging with the insurance industry through Insurance Ireland in an effort to get some much needed certainty for business policyholders. In addition, the Deputy should note that the Central Bank wrote to the CEOs of major insurers outlining its expectations of them in this crisis from a consumer protection perspective. On business interruption claims, as a result of my engagements, Insurance Ireland, on behalf of its members, agreed: insurers should not attempt to reject claims on the basis of interpreting policies to their own advantage. that where a claim can be made because a business has closed, as a result of a Government direction due to contagious or infectious disease, that the recent Government advice to close a business in the context of COVID-19 should be treated as a direction.

It did however indicate that each insurance policy is different and there may well be other factors which lead to the adjudication of whether a business interruption claim is valid or not, other than Government advice to close. I strongly believe that insurers should treat their customers honestly, fairly and professionally and honour those elements of the policies covered including business interruption claims in line with the Central Bank’s Consumer Protection Code. However, it is important to note that neither the Government nor the Central Bank have any role in requiring insurers to pay out on claims made against policies, including for business interruption, nor adjudicating on such matters. If there continues to be a disagreement between an insurer and a policyholder, then the appropriate channels for resolving them must be followed i.e. use of the Financial Services and Pensions Ombudsman or litigation.

With regard to forbearance and reliefs, as a result of my engagements, I announced an agreement with Insurance Ireland on the 10th of April whereby most of the key insurers in the Irish market - namely Allianz, AIG, AXA, FBD, Liberty Insurance, RSA, Travelers Insurance and Zurich - will apply the following common measures which will be available to their business customers:

Forbearance Insurers will reduce premiums for business customers to reflect reduced level of exposure as a result of COVID-19 restrictions for Employer Liability/ Public Liability and Commercial Motor. Insurers will allow up to 28 days after renewal for payment.

Business Premises Insurers will maintain cover for unoccupied commercial buildings/ premises not in use due to COVID-19 restriction (for a maximum of 90 days). Appropriate supervision and security of the premises is required. Insurers will support requests for a change of property use during the crisis.

It is important that businesses contact their insurers or brokers to avail of these offers. I believe that the above agreement should assist restaurants in relation to their insurance. I have asked

Insurance Ireland to put in place a mechanism, which will provide proof of delivery on these commitments, and I understand they are working on some type of activity tracker. My officials will also monitor the implementation of it and will have a good insight into how it is being applied through their regular interaction with the Alliance for Insurance Reform.

Response to Point 5 The key aim is to bring the Covid-19 outbreak under control and then to enable a gradual resumption of economic and social activity. I note the concerns raised regarding the pace of recovery for the Restaurant and Hospitality sector, and also the importance of that sector for the overall Irish economy. However, I would also note that the reality of COVID-19 is that our whole economy and labour market have been rapidly transformed by this unprecedented shock and many important sectors have also been negatively impacted.

The objective of the Temporary Wage Subsidy Scheme (TWSS) is to maintain the link between the employer and employee, affording the employee the security of a job during and after the crisis, as well as enabling the business to help employers scale back up their business after the scheme has ended. It is an emergency measure of limited duration introduced to deal with the impact of the Covid-19 pandemic on the economy and has already supported nearly half a million workers in the State.

It is not possible for the scheme to be tailored to meet every individual set of circumstances for either employers or employees because it builds on data that has been returned to Revenue through its real-time PAYE system. As a result, the core principles of the scheme are that: the business is suffering significant negative economic impact due to the pandemic, the employees were on the payroll on the dates specified, and the employer had fulfilled its PAYE reporting obligations. There is no scope for concessionary treatment on these key criteria , for example for seasonal workers, as firstly it would be counter to the TWSS legislation and secondly would create operational difficulties in administering the scheme while increasing the risk of fraud and abuse.

However, I would note that there has been no change to the entitlement of seasonal workers to regular social welfare payments which are being maintained at full value. The jobseeker’s payments usually paid to seasonal workers who had been claiming a jobseeker’s payment immediately before Covid-19 remain unaffected and will continue to be paid for the period they are unemployed.

Regarding support via the TWSS for people aged over 66, those who are in receipt of a State Pension, who are employees and have lost employment are eligible to be included in the TWSS and I would encourage all people in this category to ask their employers to ensure that they are enrolled in this scheme.

Response to Point 6 My colleague, the Minister for Business, Enterprise and Innovation has advised of the following in relation to this query.

It is important as restrictions are lifted that enterprises have in place robust business continuity plans. The success of the LEO trading on-line voucher scheme and the Enterprise Ireland business continuity vouchers indicates that there is a real hunger for stabilisation and future reboot measures. Success stories have already received widespread media and indeed international media coverage, especially for innovative trading on-line and delivery mechanisms.

The Minister for Business, Enterprise and Innovation has introduced the Covid-19 Online Retail Scheme with a total fund of €2m, to support Irish-owned retail businesses to rapidly adapt and enhance their online business capability as they work within the Covid-19 public health measures. The Scheme will also help to position retail businesses for recovery in the future, once the public health emergency and related measures have passed.

To further support retailers at this challenging time Minister for Business, Enterprise has increased grant support under this Scheme from 50% of eligible project expenditure under the previous pilot Scheme, to support up to 80% under this new Scheme. Grants ranging from €10,000 up to €40,000 will be payable to successful applicants under the new Scheme (previously the upper limit was €25,000).

Businesses are of course eager to begin trading again as soon as certain restrictions are lifted and some of these, which have been cash starved due to the general lockdown, will require some form of assistance to comply with the necessary social distancing modifications which will be required under future health and safety protocols. The Department of Business, Enterprise and Innovation is working together with the LEOs and Enterprise Ireland to ensure that such supports are well targeted and will help businesses to begin trading as efficiently as possible while in compliance with all necessary health and safety requirements.

The Department of Business, Enterprise and Innovation, through the National Standards Authority of Ireland (NSAI) has published the ‘Covid-19 Retail Protection and Improvement Guide’ outlining preventative measures that retail businesses can take to prevent the spread of Coronavirus, and help them to continue to operate. The NSAI are also operating a helpline for support in relation to improving your COVID-19 related prevention and recovery measures in the workplace. (NSAI Helpline is: 01 8073800).

Response to Point 7 and Point 9 My colleague, the Minister for Housing, Planning and Local Government has advised of the following in relation to these points:

On 2 May 2020, Government announced that a waiver of commercial rates will apply to all businesses that have been forced to close due to public health requirements, from 27 March 2020, for a three-month period. The cost involved, drawing on analysis undertaken by the local government sector, is estimated to be €260m and this will be met by the Exchequer. The position thereafter will be reviewed at a later date as part of a wider review of options to support enterprise and employment, and associated local authority funding implications, once the unwinding of public health restrictions has advanced. Government has also decided to establish a Restart Fund of €250 million targeting micro and small businesses that have suffered a dramatic loss of turnover due to the COVID-19 restrictions. It is intended that this will be a recognition for those businesses that have maintained engagement with their staff and may be linked to ongoing employment of those staff. In view of the role that commercial rates can play in post-COVID economic recovery and the impact on local authority revenues, it was agreed that this measure should be implemented via a system of Commercial Rates rebates or waivers. Businesses will receive no more than the equivalent of their 2019 rates bill, capped at €10,000 per business. The technical details of the scheme, and how the Fund will be administered, will be developed in the coming weeks by the Departments of Housing, Planning and Local Government; Business, Enterprise and Innovation; and Public Expenditure and Reform, in consultation with the local government sector. As regards restrictions on the use of outdoor space and licence fees for such use, this can be considered as part of the review of supports referred to above. However, it should be noted that

there will be a need to be mindful of social distancing for pedestrians and the other users of public space and a careful balance will need to be struck in this regard.

Response to Point 8 My colleague, the Minister for Housing, Planning and Local Government has advised of the following in relation to this matter:

The Department of Housing, Planning and Local Government is in ongoing engagement with Irish Water in relation to its response to the Covid-19 Emergency. Irish Water has acknowledged the challenges faced by their non-domestic business customers, such as those in the hospitality and services sector, notwithstanding that the majority of customers primarily pay by volume usage which will have reduced significantly for those businesses. Irish Water has undertaken to continue to work closely with these businesses to support them in terms of continued service provision and, in particular, proactive engagement via its call centre (1850 778 778) and customer support staff. Irish Water's new non-domestic tariff framework for business and commercial customers was due to come into effect on 1 May 2020. This has been deferred until the Covid-19 Emergency has abated. This decision has been taken by Irish Water with the support of their economic regulator, the Commission for Regulation of Utilities (CRU) and the Department of Housing, Planning and Local Government. The new non domestic tariff framework for Irish Water was approved by the CRU, and published in July 2019. It will apply to over 183,000 water customers from the business, industrial and agricultural sectors, as to well public bodies, charities, NGOs and social enterprises. The tariff changes were due to become fully effective from May 2020. With significant uncertainty facing businesses and enterprises at the present time, it was agreed that the introduction of the new charging framework would be deferred. The situation is to be reviewed in the coming months in light of emerging developments with Covid-19.

I also queried this matter with the Department of Communication, Climate Action and the Environment (DCCAE), who advised:

At the outset, it is important to state that the Minister for DCCAE has no function in the day-to-day regulation of the electricity and gas markets. Responsibility for the regulation of these markets is a matter for the Commission for Regulation of Utilities (CRU) which is an independent regulator under domestic and EU regulatory legislation. The CRU was assigned responsibility for the regulation of the Irish electricity market following the enactment of the Electricity Regulation Act, 1999 and subsequent legislation.

That Act states that the CRU shall account for the performance of its functions to a Joint Committee of the Oireachtas and not to me the Minister for DCCAE Given the CRU accountability in the legislation, the Deputy may wish to note that CRU provide a dedicated email address for Oireachtas members, which enables them raise questions directly to CRU at [email protected] for timely direct reply.

During these exceptional times and for the purposes only of assisting the Deputy in locating the relevant public domain information about CRU’s recent measures in light of the Covid-19 pandemic, full and comprehensive details are on the CRU website @ https://www.cru.ie/covid-19-information/ and on their various other social media channels.”

Topic – Stability and Growth Pact Rules

FIN/COVID/4.190/20 by Ged Nash T.D. To ask the Minister for Finance if the Government plans to seek the continued suspension of EU budgetary rules relating to the Stability and Growth Pact (i.e. the general escape clause of the Stability and Growth Pact); and if he will make a statement on the matter.

First and foremost, it is important to acknowledge that the Covid-19 pandemic is a health crisis. Therefore, it is essential that healthcare systems are appropriately funded. Accordingly, in March, EU Member States agreed to the European Commission’s proposal to activate what is known as the “general escape clause” of the Stability and Growth Pact (SGP), a move fully supported by Ireland. The swift activation of this clause effectively suspends the regular application of the EU fiscal rules for the time being, in order to allow Member States to take all of the necessary expenditure and taxation measures in response to the Covid-19 crisis. In practical terms, this means that Member States have been temporarily absolved of the annual requirement to be at, or moving towards, their Medium-term Budgetary Objectives (MTOs). However, as the 3 per cent deficit threshold is enshrined in the Treaty on the Functioning of the European Union (TFEU), it is not expected that the activation of the clause will preclude the launching of Excessive Deficit Procedures at a later stage. This is the first time that the general escape clause has been activated and as such there is still some ambiguity as to how to it will operate in practice. For instance, while it has been agreed that the fiscal adjustments recommended by the European Council will be suspended for 2020, it is not yet known how this will impact on requirements and assessments for 2021. Member States are seeking further clarity on these issues from the European Commission and work is progressing at a technical level on these aspects.

The Covid-19 pandemic remains a fast evolving situation. Given the uncertainty surrounding the timeline of this crisis, from both a health and economic perspective, and the need for final clarity on how the general escape clause will operate in practice, it is too early to discuss an extension of this temporary measure.

Topic – EU Covid-19 Guarantee Fund

FIN/COVID/4.797/20 by Pearse Doherty T.D. To ask the Minister for Finance what access Government would have to a COVID-19 Guarantee Fund established by the European Investment Bank, how such funding could be accessed and disbursed to businesses, and what conditions would be attached to accessing such funding.

At the Eurogroup meeting of EU Finance Ministers on 9 April agreement was reached on a comprehensive package of measures to support Member States as we tackle the enormous challenges posed by this unprecedented public health crisis.

Among the measures agreed was the EU Covid-19 Guarantee Fund. This EUR 25bn Fund is an initiative of the European Investment Bank Group (EIBG) and will provide working capital to SMEs, midcaps and corporates that are viable in the long-term but are struggling due to the economic impact of the COVID-19 pandemic.

All 27 Member States will be invited to participate in the Guarantee Fund on a pro-rata basis based on their shareholding in the EIB. Ireland’s shareholding in the EIB is 0.67%, therefore our contribution to the Guarantee Fund would be capped at EUR 167.5m.

Contributions from Member States will take the form of guarantees, therefore any losses incurred by EIB in the implementation of operations supported by the Guarantee Fund will be reimbursed by the Member States.

It is expected that Member State contributions will be committed by 30 June 2020. After this date, the Fund will be formally established, provided that Member states representing at least 60% of EIB capital have made commitments.

Topic – Temporary Wage Subsidy Scheme

FIN/COVID/4.248/20 by Pearse Doherty T.D. To ask the Minister for Finance the net weekly pay received under the Temporary Wage Subsidy Scheme for employees with prior net weekly pay of more than €412 and less than 500, and if he will make a statement on the matter;

FIN/COVID/4.249/20 by Pearse Doherty T.D. To ask the Minister for Finance if he will introduce a minimum payment of €350 to the Temporary Wage Subsidy Scheme to ensure that low-paid workers do not receive less than €350 per week under the scheme, and if he will make a statement on the matter;

FIN/COVID/4.793/20 by Pearse Doherty T.D. To ask the Minister for Finance what measures has or will the Minister take to ensure that those who had net weekly pay of less than €412 before the introduction of the Temporary Wage Subsidy Scheme do not receive less than €350 per week if their employer has applied for the Temporary Wage Subsidy Scheme, and will he introduce a minimum weekly payment of €350 per week to said scheme, and if he will make a statement on the matter;

I propose answering questions 4.248/20, 4.249/20 and 4.793 together. Section 28 of the recently enacted Emergency Measures in the Public Interest (Covid-19) Act 2020 provides for the introduction of the Temporary Wage Subsidy Scheme (TWSS). The Act makes provision for the Minister for Finance to determine the amount of the temporary wage subsidy, with the consent of the Minister for Employment Affairs and Social Protection, given with the concurrence of the Minister for Public Expenditure and Reform, and different amounts of temporary wage subsidies may be so determined in relation to different classes of employee. On 15 April 2020, I, as Minister for Finance, announced further updates to the TWSS.

Included in the updates were measures to increase the wage subsidy for certain lower paid employees. In effect, for those employees with previous net pay of less than €586 per week, the amount of the temporary wage subsidy shall not exceed €410 per week in accordance with the following principles: • an 85% subsidy shall be payable in the case of employees whose average net weekly pay does not exceed €412; and • a flat rate subsidy of up to €350 shall be payable in the case of employees whose average net weekly pay is more than €412 but not more than €500. In addition, where an employer wishes to pay a greater level of top-up, in respect of employees with net pay of less than €412 per week, in order to bring the employee’s pay to €350 per week, then tapering would not be applied to the subsidy.

These changes to the TWSS mean that more employees will now receive a subsidy of €350 per week, and those with previous net pay below €412 per week will now receive a greater level of subsidy. Revenue has confirmed that the new subsidy rates will become fully operational for payroll submissions made on or after 4 May 2020, with a pay date on or after that same date. Until 4 May 2020, the current transitional arrangements apply whereby eligible employers will receive a refund of the maximum subsidy of €410 in respect of each eligible employee, regardless of the employee’s income. However, for administrative purposes and to allow for future reconciliation of subsidy payments made, it has been recommended that employers only pay an amount equivalent to the likely final subsidy to each employee when running their payroll.

The changes announced allow the concentration of resources to protect incomes, in a proportionate way having regard to available resources, employer contribution and the broader suite of Covid related supports put in place by the Government.

The TWSS is predicated on the employer wanting to keep the employees on the payroll and to retain them until business picks up. The amount of the subsidy for each employee is calculated based on the average net weekly pay reported for January and February 2020. There is no distinction made regarding the subsidy amount based on whether the business has closed due to the restrictions brought in by the Government or has continue to trade with employees continuing to work full time, with similar hours as before the Covid-19 pandemic. The employer is expected to make best efforts to maintain the employee’s net income, reflected in the average net weekly payment for January and February 2020, for the duration of the scheme. There is, however, no minimum amount that the employer must pay as an additional payment in order to be eligible for the scheme, but for Revenue operational systems reasons the employer will need to enter at least €0.01 in Gross Pay when running its payroll. If the employer makes an additional payment greater than the difference allowed by the Scheme, then the subsidy value refundable to the employer will be reduced by this excess amount when the refund reconciliation is performed by Revenue in due course.

Topic – Temporary Wage Subsidy Scheme

FIN/COVID/4.127/20 by Jackie Cahill T.D. To ask the Minister for Finance when an employee is part of an Employers Wage Subsidy Scheme can the employer instruct the employee to take annual leave on specific days while the Scheme is in progress.

The Government’s priority in so far as the Temporary Wages Subsidy Scheme (TWSS) is concerned was and is to ensure that all employers experiencing significant negative economic disruption from COVID-19 can register for and start to receive payment quickly. The overarching ambition of the scheme is to ensure the key relationship between employers and employees is maintained to the greatest extent possible so that businesses can restart operations quickly once the crisis has passed.

In the context of the compelling need for immediate implementation of the TWSS, the scheme necessarily had to build on data returned to Revenue through its real-time PAYE system. The key conditions of the scheme, as prescribed in the underlying law, are that –  the business is suffering significant negative economic impact due to the pandemic,  the employees were on the payroll at 29 February 2020, and  the employer had fulfilled its PAYE reporting obligations for February 2020 by, in general, 15 March 2020.

The TWSS does not distinguish between ordinary wages, shift allowances, overtime, bonuses or commission or between part-time or full-time employees. Moreover, the scheme has no role in relation to the employer/employee relationship in so far as terms, conditions and entitlements of the employment are concerned. Consequently, the operation and management of annual leave is a matter between the employer and employee and is outside the remit of the scheme.

Topic – Temporary Wage Subsidy Scheme

FIN/COVID/4.035/20 by Brid Smith T.D. To ask the minister for Finance If employers are allowed to claim 50% of the net earnings in the wage subsidy scheme for their employees while having their employees work part time?

FIN/COVID/4.575/20 by Richard Boyd Barrett T.D. To ask the Minister for Finance can employers apply for the wage subsidy scheme while continuing to operate and employ their workforce, can they access the scheme but apply for only 50% of their employees net earnings and to make a statement on the matter.

I propose answering questions 4.035/20 and 4.575/20 together. The Government’s priority in so far as the Temporary Wage Subsidy Scheme (TWSS) is concerned was, and is to ensure that all employers experiencing significant negative economic disruption from COVID-19 can register for and start to receive payment quickly. The overarching ambition of the scheme is to ensure that the key relationship between employers and employees is maintained to the greatest extent possible so that businesses can restart operations quickly once the crisis has passed. Furthermore, the scheme is available to eligible employers across all sectors, excluding the Public Service and Non-Commercial Semi-State Sector. This includes businesses that have closed due to the Covid-19 restrictions and those that continue to operate and employ their workforce.

The TWSS builds on payroll data returned to Revenue through its real-time PAYE system. The key eligibility criteria for the scheme are that –  the business is suffering significant negative economic impact due to the pandemic,  the employees were on the payroll at 29 February 2020, and  the employer had fulfilled its PAYE reporting obligations for February 2020 by 31 March 2020. The latter two requirements for eligibility for the TWSS were particularly designed as safeguards against abuse and exploitation of the scheme.

Accordingly, the TWSS can only operate in respect of an employee, whether full-time or part-time, who was on the payroll of the relevant employer as at 29 February 2020. The subsidy is calculated based on the net pay reported for January and February 2020 and there is no requirement for employers to pro rata the subsidy based on whether the employee is temporarily laid off or working full or part time. The scheme is predicated on the employer wanting to keep the employees on the payroll and to retain them until business picks up. The employer is expected to make best efforts to maintain the employee’s net income as close as possible to normal net income for the duration of the scheme. There is, however, no minimum amount that the employer must pay as an additional payment in order to be eligible for the scheme, but for Revenue operational systems reasons the employer will need to enter at least €0.01 in gross pay when running its payroll.

Topic – Temporary Wage Subsidy Scheme

FIN/COVID/4.006/20 by Catherine Murphy T.D. To ask the Minister for Finance what the level of rejections are so far for applications under the COVID-19 Wage Subsidy scheme; if there is an appeals process being considered; if he has reviewed the reasons for rejections; if he intends making any changes to the scheme and if he will make a statement on the matter.

FIN/COVID/4.026/20 by Mattie McGrath T.D. "I am writing to you in relation to claims that revenue have rejected a number of wage subsidy scheme applications over minor issues such as late submission.

I would be grateful if you could let me know how many applications have been rejected to date; the reasons for such rejection; whether those applications that have been rejected will still be accepted and back paid once issues have been resolved.

It is imperative that revenue offer increased flexibility for all employers at this time as they work to support their employees while worrying about their future business prospects and working from home in an ever changing situation.

Thank you for your assistance with this matter and I look forward to hearing from you in this regard. " FIN/COVID/4.165/20 by Mattie McGrath T.D. "I am writing to you in relation to claims that revenue have rejected a number of wage subsidy scheme applications over minor issues such as late submission.

Thank you for your assistance with this matter and I look forward to hearing from you in this regard. "

I propose to answer Questions 4.006/20, 4.026/20 and 4.165/20 from Deputy Murphy and McGrath together as both relate to the administrative aspects of the Temporary Wage Subsidy Scheme.

The Government’s priority in so far as the Temporary Wages Subsidy Scheme (TWSS) is concerned was, and is to ensure that all employers experiencing significant negative economic disruption from COVID-19 can register for and start to receive payment quickly. The overarching ambition of the scheme is to ensure the key relationship between employers and employees is maintained to the greatest extent possible so that businesses can restart operations quickly once the crisis has passed.

 the business is suffering significant negative economic impact due to the pandemic,  the employees were on the payroll at 29 February 2020, and  the employer had fulfilled its PAYE reporting obligations for February 2020 by 15 March 2020.

Accordingly, the TWSS can only operate in respect of an employee, whether full-time or part-time, who was on the payroll of the employer as at 29 February 2020. Thus, where an individual commenced a new employment after that date, he or she does not meet the eligibility criteria with the new employer as he or she would not have been on the employer’s payroll at that date. Moreover, where an employer has not met its statutory PAYE reporting obligations for February 2020 by 15 March 2020, then the employer is not eligible to participate in the scheme. These requirements of the TWSS were critical safeguards against abuse and exploitation of the scheme.

It should also be noted that under employment law employers are obliged to issue detailed payslips to employees, while PAYE legislation requires employers to report their payroll to Revenue in real time as the payroll is run. Thus, employers are obliged to report the tax and PRSI deducted from their employees’ wages in real time. The TWSS law also requires employers to provide details of wage subsidy payments to employees on their payslips. These obligations provide important safeguards and visibility for employees in relation to the tax and PRSI that is deducted from, and any wage subsidy added to, their wages. Extensive engagement took place with employers, their agents and payroll providers during 2017 and 2018 in the run up to the introduction of PAYE Modernisation on 1 January 2019. This has been followed up with significant engagement through 2019 and the first two months of 2020. It is the real time information provided through PAYE Modernisation that enabled Revenue to take responsibility for the administration of the TWSS and implement it really quickly, with wage subsidy payments starting to be paid on the very day the relevant legislation was passed by the Oireachtas. It should also be noted that the vast majority of employers that have applied for the scheme have met the reporting requirements.

The application and operation of the scheme is based largely on self-assessment principles. Where a business fails to meet the qualifying criteria for TWSS under the above process there is no formal appeal mechanism provided for in the legislation. However, both I and Revenue have received numerous representations from and on behalf of employers who have not met their PAYE reporting obligations for February 2020. Many of the representations have indicated that employers had genuine reasons for missing the 15 March 2020 deadline, that those employers are generally compliant and that they are anxious to keep the link with their employees. Some employers have confirmed that they can produce records, bank statements, wage slips, etc., to show that they had the employees on the payroll at 29 February 2020 and had paid them the relevant wages.

I am advised by Revenue that up to Friday 24 April 2020 35,362 employers had submitted claims under the scheme. The breakdown for the employers who submitted claims are as follows:  29,662 (83.9%) of these employers received TWSS for all the employees submitted,  4,372 (12.4%) of employers received TWSS for some of the employees submitted, and  1,328 (3.8%) of employers did not receive TWSS for any employees submitted.

The 35,362 employer figure I referred to represents a total of 348,272 employees. This can be further categorised to show that 327,237 individuals have received a subsidy payment and 21,035 individuals did not receive a subsidy payment.

Submissions for refund under the scheme which are refused broadly fall under the following categories:

 Employees not meeting the eligibility requirements, including employees that did not have pay in the required periods and where the employer did not make the required payroll submissions by March 15, and  Employers not operating the scheme in line with the guidance issued, including not providing bank details and making multiple submissions for the same pay date.

From reviewing cases since the TWSS started, it has become apparent to Revenue that a number of employers have been unable to access the scheme because they failed the 15 March 2020 rule but had qualified under all other conditions of the scheme and are otherwise tax compliant. Given the overarching purpose and objective of the scheme, Revenue has decided, under its care and management provisions, to allow such employers access the scheme provided:  the employees in respect of whom the wage subsidy is claimed were included on the employer’s payroll on 29 February 2020,  the February 2020 payroll submissions were submitted to Revenue before 1 April 2020, and  the payroll submissions for all previous months were submitted to Revenue before 15 March 2020.

Where a business qualifies for the TWSS under the revised criteria, the wage subsidies under the scheme will be payable for eligible employees in respect of payroll submissions made on or after 24 April 2020, with a pay date on or after 24 April 2020, and cannot and will not be retrospective. It is important to note that where employees are receiving COVID-19 related Pandemic Unemployment Payments (PUP) from the Department of Employment and Social Protection (DEASP) and are subsequently ‘rehired’ by the employer to avail of the TWSS payment, it is important that the PUP is ceased. Revenue and DEASP are sharing information to identify duplicate payments across both schemes.

On 9 April 2020, Revenue published an initial set of statistics on the operation of the COVID-19 Temporary Wage Scheme Subsidy (TWSS). These were updated and extended with a second set of statistics published on 17 April and a third set published on 23 April. . All TWSS statistics are available at: https://www.revenue.ie/en/corporate/information-about-revenue/statistics/number-of- taxpayers-and-returns/covid-19-wage-subsidy-scheme-statistics.aspx.

The statistics cover the operation of the TWSS to 23 April. The data published include the cost of the scheme to date, wage information for employees and breakdowns of employers and employees in receipt of payments under the scheme. Table 9 of the April 23 statistics shows the available breakdown of TWSS employees by range of net weekly pay.

I am advised that Revenue is continuing to undertake further analysis of TWSS and will publish updated and expanded statistics on a regular basis. These updates will be published at the link noted above. Further information is available at: https://www.revenue.ie/en/corporate/communications/documents/twss-extended-deadline- feb2020-payroll-submissions.pdf

Finally, any queries in relation to the operation of the scheme should be submitted via Revenue’s myEnquiries system.

Topic – Banking

FIN/COVID/4.789/20 by Pearse Doherty T.D. To ask the Minister for Finance what correspondence has the Minister had with the Banking and Payments Federation regarding the application of interest accrued over the 3 month deferral period or additional interest on mortgage loans by banks and non-banks whereby the mortgage-holder has availed of a three month mortgage break as a result of COVID-19

FIN/COVID/4.790/20 by Pearse Doherty T.D. To ask the Minister for Finance what correspondence has the Minister had with any of the five retail banks regarding the application of interest accrued over the 3 month deferral period or additional interest on mortgage loans by banks and non-banks whereby the mortgage-holder has availed of a three month mortgage break as a result of COVID-19, and if he will make a statement on the matter;

FIN/COVID/4.791/20 by Pearse Doherty T.D. To ask the Minister for Finance what correspondence has the Minister had with the Central Bank regarding the application of accrued interest over the 3 month deferral period or additional interest on mortgage loans by banks and non-banks whereby the mortgage-holder has availed of a three month mortgage break as a result of COVID-19, and if he will make a statement on the matter;

On 18 March last I met with Banking and Payments Federation Ireland (BPFI) and the CEOs of the five main retail banks, and following that meeting the banks outlined a coordinated approach, which included payment breaks on mortgages and other loans, to supporting their personal and business customers who have been impacted by the Covid-19 crisis. Since then, my Department has kept in contact with the BPFI and certain lenders in relation to the impact of Covid-19, and of course my Department always maintains close and regular contact with the Central Bank on all matters of mutual interest. As the Deputy will appreciate, the economic difficulties and issues associated with Covid-19 continue to evolve and the recent statement by the BPFI (on 30 April), which stated that the period of loan payment breaks will increase to six months, is testament to this.

The Central Bank has advised that it continues to work with lenders to ensure the fair treatment of customers who find themselves in financial difficulties due to the exceptional circumstances of Covid-19. Payment breaks give borrowers affected by Covid-19 the opportunity to postpone or substantially reduce their repayments at a time of stress. It is clear that these payment breaks are necessary for many borrowers to enable them to deal with the immediate shock that they are experiencing. The Central Bank expects lenders to clearly explain to their customers the implications of a payment break, for the term, payment schedule and costs of the loan. This includes clarity on how the term of the mortgage will extend, and / or whether the payment break will require increased monthly payments in the future once the break expires.

Across the European Union, non-performing loans are classified according to a common set of rules under the accounting and banking regulations. Changes to interest charging can, under these rules, result in forbearance implications and in loans becoming classified as in default under distressed restructuring, with consequences for both consumers and banks. The Central Bank has engaged extensively with its counterparts across the EU (in the European Banking Authority and as part of the Single Supervisory Mechanism) to ensure that the non-legislative payment breaks applied in Ireland avoid the classification of exposures under the definition of forbearance or as defaulted under distressed restructuring, where appropriate. In this context, the recently published EBA Guidelines (see https://eba.europa.eu/eba-publishes-guidelines-treatment-public-and-private- moratoria-light-covid-19-measures ) provide clarity on the treatment of payment moratoria and in

particular that payment moratoria do not trigger classification as forbearance or distressed restructuring if the measures taken meet certain conditions.

Topic – Representations Revenue

FIN/COVID/4.716/20 by Richard Boyd Barrett T.D. To ask the Minister for Finance whether there is a TD representations contact in Revenue in relation to Covid matters I am advised by Revenue that it operates an ‘Oireachtas Helpline’ (number issued to the Deputy) which is a dedicated telephone service for Oireachtas members to query tax or duty issues. The service includes any queries in respect of the COVID-19 Temporary Wage Subsidy Scheme (TWSS), which is administered by Revenue. The service operates from 09:30-17:00, Monday to Friday, and has a voicemail/call back service for calls received outside office hours or when the phone line is engaged.

Revenue also provides extensive information regarding the TWSS on its website at link www.revenue.ie/en/corporate/communications/covid19/index.aspx.which may be of assistance to the Deputy.

Topic – Tax Self-Employed

FIN/COVID/4.633/20 by Norma Foley T.D. To ask the Minister to confirm what measures are in place to assist the self employed with tax payments due in this time of Covid 19 pandemic.

I have been advised by Revenue that it continues to work with taxpayers to resolve their tax payments difficulties. While taxpayers are advised to pay tax liabilities if at all possible, Revenue recognise that tax payment difficulties are an inevitable impact of the COVID-19 pandemic.

The specific measures in place to assist employers who are experiencing tax payment difficulties are available on the Revenue website. https://www.revenue.ie/en/corporate/communications/covid19/filing-and-paying.aspx

Revenue will continue to issue updated guidance to businesses in good time before future returns are due. It is important that businesses, which may be facing difficulty in paying their taxes for the first time, know that Revenue will work with them to resolve their tax payment difficulties. With early and meaningful engagement, Revenue can generally agree payment arrangements that are acceptable to both the business and Revenue.

Topic – Economic and Fiscal Outlook

FIN/COVID/4.796/20 by Pearse Doherty T.D. To ask the Minister for Finance the projected deficit in gross terms for 2020 as a result of Covid-19, and how it will be funded, through long-term borrowing, short-term borrowing, cash/equity transfers, or a combination of all;

The Government published its Draft Stability Programme Update on 21 April. This set out an updated economic and fiscal scenario, for this year and next, incorporating the impact of the Covid- 19 pandemic. The necessary fiscal cost of providing short-term support to the private sector will be significant. A general government deficit of €23 billion is currently projected for this year.

The starting position is favourable: a general government surplus was delivered last year; the Rainy Day Fund (RDF) was established; at end-March the NTMA had c.€22 billion of cash - pre-funding this year’s redemptions; and there are no bonds maturing next year.

In light of the updated fiscal position, including the Exchequer Borrowing Requirement of €15.6 billion, the National Treasury Management Agency (NTMA) has announced a revised bond funding range of €20 billion to €24 billion for the year.

The NTMA has issued over €11 billion in bonds so far this year. This includes two new bonds maturing in 2027 and 2035. There are further bond auctions scheduled this quarter. The NTMA also plans to increase Treasury Bill and Commercial Paper Issuance. Overall short term issuance is expected to increase by a further €5 billion by year end.

The first instalment of the National Asset Management Agency (NAMA) surplus of €2 billion was due to be made this year and had already been accounted for in the Budget 2020 fiscal projections.

Given the scale of the impact on the economy of Covid-19 it is envisaged that the RDF drawdown, when it happens, will be for the current value of the Fund i.e. €1.5 billion less expenses incurred by the NTMA in managing the Fund. Drawdown of the RDF means that the Exchequer Borrowing Requirement for 2020 is c. €1.5 billion less than would otherwise be the case. The rationale for having such a Fund – for use in exceptional circumstances such as these – has been strengthened by this crisis.

Due to recent successful debt issuances by the NTMA, there is no immediate need for drawdown and no specific date as to when drawdown will happen.

Finally, the interest rate environment remains accommodative owing to European Central Bank policy action and the introduction of its €750 billion Pandemic Emergency Purchase Programme.

Topic – Temporary Wage Subsidy Scheme

FIN/COVID/4.456/20 by Michael McGrath T.D. To ask the Minister for Finance to confirm the date on which the Temporary Wage Subsidy Scheme is currently due to end; to state whether consideration is being given to extending the scheme; and if he will make a statement on the matter

Section 28 of the recently enacted Emergency Measures in the Public Interest (Covid-19) Act 2020 provides for the introduction of the Temporary Wage Subsidy Scheme (TWSS). The Act provides that the scheme is operable for the period commencing on 26 March 2020 and ending on such day as the Minister for Finance determines and specifies in an order to be made by him or her.

As the Deputy is aware, the TWSS is an emergency measure to deal with the impact of the Covid- 19 pandemic on the economy. It was originally envisaged that the TWSS would last some 12 weeks. As at 30 April 2020, €712 million has been paid out in wage subsidy payments under the scheme. I have previously made it clear that the TWSS and the pandemic unemployment payment are not

schemes the State can fund indefinitely. The Government continues to consider appropriate measures to allow employees transition from emergency income support and to allow employers to resume business having full regard to the public health advice.

Topic – Tax Pandemic Unemployment Payment

FIN/COVID/4.136/20 by Michael McGrath T.D. To ask the Minister for Finance if he will confirm whether the Covid-19 pandemic unemployment payment is taxable income and if he will make a statement on the matter.

FIN/COVID/4.138/20 by Jackie Cahill T.D. To ask the Minister for Finance how will a person be taxed on the Covid 19 Welfare Payment assuming that they are on it for 12 weeks and then resume work for the other 40 weeks of a 12 month period, will there be down the line tax implications for the individual and how will it impact their credits

I propose to answer questions 4.136/20 and 4.138/20 together.

Payments made under the Pandemic Unemployment Payment (PUP) are income supports and are subject to income tax. The taxation position follows the general taxation rule for social welfare payments and, thus, while liable to income tax, the payments will be exempt from PRSI and the Universal Social Charge. This is the case whether the recipient of the PUP is either a former PAYE worker or a person who was previously self-employed.

While not liable to tax in real time under the PAYE system, the liability to tax on payments under the PUP will instead normally be determined by way of review at the end of the tax year.

I am advised by Revenue that when an end of year review takes place, it may be the case that an employee’s unused tax credits will cover any further liability that may arise as a result of the taxation. Where this is not the case and should a tax liability arise, it is normal Revenue practice to collect any tax owing in manageable amounts by reducing an individual’s tax credits for a future year or future years in order to minimise any hardship. Additionally, if an individual has any additional tax credits to claim, for example health expenses, this will also reduce any tax that may be owing.

Where on completion of the 12 week period for which the PUP is expected to operate, the employee reverts to normal employment at the same weekly gross pay as before the period on the PUP, Revenue will then operate tax on the Week 1/Month 1 basis, following the end of a person’s period on the PUP. Under the Week 1/Month 1 basis, the tax is effectively collected in equal instalments over the remainder of the current year by restricting the person’s weekly tax credits to 1/52nd of the annual credit. In effect the employee’s weekly gross and weekly net pay will be the same as it was before the crisis but the equivalent of 12 weeks’ credits will be available to offset against the liability on the payment with any balance carried forward as set out above.

It is difficult to predict what will happen with wage levels and the individual circumstances of employees. In this context I have been assured by Revenue that they will be adopting a fair and flexible approach to collecting tax due on payments made under the PUP.

Topic – Student Accommodation Tax Incentives

FIN/COVID/4.852/20 by Brid Smith T.D. If the Minister will investigate the providers of Student accommodation who are refusing to refund costs to students who had to leave their accommodation as a result of Covid 19, and specifically if he will detail the tax benefits applicable to providers of student accommodation, the estimated costs to date to the exchequer of the tax regime for these providers, and if he will consider making access to further schemes dependent on the just treatment of students forced to abandon their accommodation and studies as a result of Covid 19 and if he will make a statement on the matter?

As the Deputy will appreciate, I do not have a direct role in the terms of the provision of accommodation to students or other persons.

There are currently no tax incentive measures specifically targeted at the providers of student accommodation.

Section 50 of Finance Act 1999 provided for a student accommodation scheme whereby expenditure incurred on student rental accommodation can be set against the rental income from the property and against other Irish rental income, thus reducing the taxable income of the person incurring the expenditure. The relevant provisions in the Taxes Consolidation Act 1997 are contained in Part 10, Chapter 11, sections 372AK to 372AV. The scheme has now terminated, in so far as the termination date for incurring qualifying expenditure has now passed. The qualifying period applied up to 31 December 2006, although under certain circumstances the qualifying period could be further extended to 31 July 2008. Claims in relation to qualifying expenditure incurred before the termination date continue to arise.

Revenue advises that the continuing run-off cost of the terminated scheme is as set out below. 2017 is the most recent year for which data are available.

Amount Maximum No. of Year Claimed Exchequer Claimants €m Cost €m 2017 22.5 8.8 246 2016 23 9 292 2015 29.9 11.8 361 2014 26.4 11.1 414 2013 31.2 11.9 537 2012 29.9 12.4 606 2011 35.5 14.5 640

Further information on the cost of the measure is available at https://revenue.ie/en/corporate/information-about-revenue/statistics/tax- expenditures/property-reliefs.aspx

Any possible future tax-based incentives or schemes in relation to the provision of student accommodation would have to be dealt with in the context of the Budget and Finance Bill process at that time and their design would likely have regard to my Department’s Tax Expenditure Guidelines.

Topic – Temporary Wage Subsidy Scheme

FIN/COVID/4.125/20 by Jackie Cahill T.D. To ask the Minister for Finance how tax and PRSI are being handled for the employee in the Employer Wage Subsidy Scheme and is it possible that an employee could have tax implications later in the year when he or she returns to working and salary as per the normal system.

FIN/COVID/4.714/20 by Richard Boyd Barrett T.D. To ask the Minister for Finance; the Covid – 19 wages subsidy scheme is based on average net incomes from submissions of January and February, however the Revenue website states that ‘the subsidy will be liable for income tax and USC on review at end of year’, if subsidy is net wage then how will tax and USC be liable?

FIN/COVID/4.173/20 by Neale Richmond T.D. To ask the Minister for Finance if he will confirm whether consideration is being given to offering a refund of any excess tax liability that may arise at the end of the year to an employee that is subject to the Temporary COVID-19 Wage Subsidy Scheme and has seen no reduction in their gross pay while forming part of the scheme, but as a result of being part of the scheme, may have a greater tax liability at the end of the year than if they had not been part of the scheme; and to ask the Minister to make a statement on the matter.

FIN/COVID/4.250/20 by Pearse Doherty T.D. To ask the Minister for Finance how tax liability will be assessed and then collected by Revenue for employees receiving payments under the Temporary Wage Subsidy Scheme, and if he will make a statement on the matter.

I propose to take these questions together as they relate to the tax treatment of the Temporary Wage Subsidy Scheme (TWSS).

Disbursements made under the TWSS are in the nature of income supports and share the characteristics of income. On first principles, therefore, they are liable to income tax. Also, other income earners in receipt of comparable “normal wages” are subject to tax on those wages. In the interest of equity, the payments made under the TWSS are therefore subject to income tax.

Tax will not be collected in real-time while the scheme is in operation. This is in keeping with the Government’s intention to get much needed financial support into the hands of affected workers as quickly as possible.

Instead, liability to tax will be determined by way of review at the end of the year and the normal tax calculation rules will apply in carrying out that determination. When an end of the year review takes place, it may be the case that an employee’s unused tax credits will cover any further liability that may arise. Furthermore, if an individual has any additional tax relief to claim depending on their personal circumstances, for example for health expenses incurred, this will also reduce any tax that may be due.

Where this is not the case, and should tax be due, it is normal Revenue practice to collect any tax owing in manageable amounts by reducing an individual’s tax credits for a future year or years in order to minimise any hardship.

In the case of lower income individuals or households, the additional liability to tax, if any, arising from the payments is likely to be modest.

I have been assured by Revenue that they will be adopting a fair and flexible approach to collecting tax due on these payments.

Any top-up of a TWSS payment by the payment of some element of normal wages by the employer remains taxable through the PAYE system.

In relation to PRSI, although the employer’s PRSI on any top-up payment is reduced from 11.05% to 0.5% and no employee PRSI applies, it is intended that employees in respect of whom a temporary wage subsidy is being properly paid will be allocated social insurance contributions appropriate to their normal employment status for the duration of the temporary wage subsidy.

A document containing further detailed information and Frequently Asked Questions relating to the TWSS is available on Revenue’s website: https://www.revenue.ie/en/employing-people/documents/pmod-topics/guidance-on-operation- of-temporary-covid-wage-subsidy-scheme.pdf

Topic – Frontline Workers

FIN/COVID/4.614/20 by Norma Foley T.D. Will the Minister commit to making funds available to provide a bonus for frontline workers as an acknowledgement of their invaluable service throughout this pandemic?

The Government greatly appreciates the additional efforts of essential workers, front line staff and all those working during this difficult time.

They are making a vital contribution to the State-wide response to the COVID-19 crisis.

However, at this time, available resources are being focused on new initiatives to support those who are no longer in employment or who will have reduced income in the coming weeks and months as well as measures seeking to support employers in retaining staff on the payroll.

Topic – Sole Traders Supports

FIN/COVID/4.787/20 by Kathleen Funchion T.D. To ask the Minister if sole traders can now apply for the wage subsidy scheme

Sole traders, in their personal capacity, do not come within the ambit of the Temporary Wage Subsidy Scheme (TWSS), the purpose of which is to subsidise the wages of employees. The TWSS is an emergency measure to deal with the impact of the Covid-19 pandemic on the economy, and has the overarching objective of ensuring that the key relationship between employers and employees is maintained to the greatest extent possible so that businesses can restart operations quickly once the Covid-19 crisis has passed. The scheme is available to eligible employers across all sectors, excluding the Public Service and Non-Commercial Semi-State Sector. This includes businesses that have closed due to the Covid-19 restrictions and those that continue to operate and employ their workforce.

The TWSS builds on data returned to Revenue through its real-time PAYE system. It cannot be tailored to meet every individual set of circumstances for either employers or employees. The core principles are that the business is suffering significant negative economic impact due to the pandemic and that the employees were on the payroll at 29 February 2020 and the employer had fulfilled its PAYE reporting obligations for February 2020 by 31 March 2020. The wage subsidy is payable to the employer to be passed on to its employees and is calculated based on the net pay reported for January and February 2020.

Sole traders are eligible to apply to the Department of Employment Affairs and Social Protection for the COVID-19 Pandemic Unemployment Payment scheme.

Topic – Hospitality Sector Supports

FIN/COVID/4.481/20 by Mattie McGrath T.D. "My Constituent took over a restaurant on March 1st 2020, and had to close on March 15th. The staff are getting paid through the Covid-19 payment scheme.

However, they report the following problem: • To get back open again with a limited capacity, they are not eligible for the staff part payment scheme as they are out of the time frame of 29th February? • They are closed 7 weeks and incurring insurance costs, electricity cost, phone and internet etc. The VAT rate is also making it more difficult. • In order for the business to get back up and running and have staff return to work, they require to be included in the wage support scheme and much more support.

They report they require government help now or will not survive the rest of the year.

I would appreciate if you could have this matter investigated and come back to me as soon as possible please."

scheme is to ensure the key relationship between employers and employees is maintained to the greatest extent possible so that businesses can restart operations quickly once the crisis has passed.

The TWSS builds on data returned to Revenue through its real-time PAYE system. It must be accepted that the underlying legislation and the scheme itself simply cannot be tailored to meet every individual unique set of circumstances for either employers or employees. The key eligibility criteria for the scheme are that – the business is suffering significant negative economic impact due to the pandemic, the employees were on the payroll at 29 February 2020, and the employer had fulfilled its PAYE reporting obligations for February 2020 by 31 March 2020. The latter two requirements for eligibility for the TWSS were particularly designed as safeguards against abuse and exploitation of the scheme.

Accordingly, the TWSS can only operate in respect of an employee, whether full-time or part-time, who was on the payroll of the relevant employer as at 29 February 2020. Thus, where an individual commenced an employment with a new employer after that date, he or she does not meet the eligibility criteria with the new employer as he or she would not have been on the employer’s payroll at that date. Moreover, a newly commenced business from 1 March 2020 obviously could not have satisfied PAYE reporting obligations for February 2020 as it had no such obligations and, consequently, the employer in question is not eligible to participate in the scheme.

Topic – Temporary Wage Subsidy Scheme

FIN/COVID/4.676/20 by Richard Boyd Barrett T.D. To ask the Minister for Finance if workers whose employers have accessed the Wage Subsidy scheme apply for access to social welfare supports for the days they are not working and will he make a statement on the matter?

The Temporary Wage Subsidy Scheme (TWSS) is predicated on the employer wanting to keep the employees on the payroll and to retain them until business picks up. The TWSS can only operate in respect of an employee, whether full-time or part-time, who was on the payroll of the relevant employer as at 29 February 2020.

The amount of the wage subsidy for each employee is based on the average net weekly pay reported by the employer under the PAYE system for January and February 2020. There is no distinction made regarding the wage subsidy amount based on whether the business has closed due to the Covid-19 restrictions or has continued to trade with employees working part-time or continuing to work full time with similar hours as before the Covid-19 pandemic. There is also no requirement for employers to pro rata the subsidy based on whether the employee is temporarily laid off or working full or part-time. The employer is expected to make best efforts to maintain the employee’s net income as close as possible to normal net income for the duration of the scheme. There is, however, no minimum amount that the employer must pay as an additional payment in order to be eligible for the scheme, but for Revenue operational systems reasons the employer will need to enter at least €0.01 in gross pay when running its payroll.

As I have mentioned, the TWSS provides for the payment of income supports to employers in respect of eligible employees, whether those employees were in full-time or part-time employment prior to Covid-19. An individual is not entitled to the Pandemic Unemployment Payment administered by the Department of Employment Affairs and Social Protection (DEASP) if he or she

is availing of wage subsidy payments under the TWSS. However, through its Short Time Work Support Payment, the DEASP provide access to social welfare support for individuals who were employed part-time pre Covid-19, where certification from the employer was provided, subject to the terms and conditions of that payment scheme. An individual’s entitlements to such DEASP support for the days he or she are not working is a matter for DEASP but will not have any impact on the individual’s eligibility for the TWSS.

Topic – Childcare Sector TWSS

FIN/COVID/4.206/20 by Mary Lou McDonald T.D. To ask the Minister if he is aware of Childcare providers unable to access the Temporary Wage Subsidy Scheme for the Childcare Sector on the basis that Revenue have refused applications to the Temporary Wage Subsidy Scheme where February 2020 payroll returns were amended in March, and if he will make a statement on the matter.

The Government’s priority in so far as the Temporary Wage Subsidy Scheme (TWSS) is concerned was and is to ensure that all employers experiencing significant negative economic disruption from COVID-19 can register for and start to receive payment quickly. The overarching ambition of the scheme is to ensure the key relationship between employers and employees is maintained to the greatest extent possible so that businesses can restart operations quickly once the crisis has passed.

The TWSS builds on data returned to Revenue through its real-time PAYE system. It must be accepted that the underlying legislation and the scheme itself simply cannot be tailored to meet every individual unique set of circumstances for either employers or employees. The core principles of the scheme, as prescribed in the underlying law, are that –  the business is suffering significant negative economic impact due to the pandemic,  the employees were on the payroll at 29 February 2020, and  the employer had fulfilled its PAYE reporting obligations for February 2020 by 15 March 2020.

safeguards and visibility for employees in relation to the tax and PRSI that is deducted from, and any wage subsidy added to, their wages. Extensive engagement took place with employers, their agents and payroll providers during 2017 and 2018 in the run up to the introduction of PAYE Modernisation on 1 January 2019. This has been followed up with significant engagement through 2019 and the first two months of 2020. It is the real time information provided through PAYE Modernisation that enabled Revenue to take responsibility for the administration of the TWSS and implement it really quickly, with wage subsidy payments starting to be paid on the very day the relevant legislation was passed by the Oireachtas. It should also be noted that the vast majority of employers that have applied for the scheme have met the reporting requirements.

Both I and Revenue have received numerous representations from and on behalf of employers, including employers in the childcare sector, who have not met their PAYE reporting obligations for February 2020. Many of the representations have indicated that employers had genuine reasons for missing the 15 March 2020 deadline, that those employers are generally compliant and that they are anxious to keep the link with their employees. Some employers have confirmed that they can produce records, bank statements, wage slips, etc., to show that they had the employees on the payroll at 29 February 2020 and had paid them the relevant wages.

Further information is available at https://www.revenue.ie/en/corporate/communications/documents/twss-extended-deadline- feb2020-payroll-submissions.pdf .

Finally, any queries in relation to the operation of the scheme should be submitted via Revenue’s myEnquiries system.

Topic – Deposit Guarantee Scheme

FIN/COVID/4.365/20 by Jackie Cahill T.D. To ask the Minister for Finance if the 100,000 Euro State Bank Guarantee is affected in any way by the current Covid 19 crisis.

In 2014, the Deposit Guarantee Scheme (DGS) was introduced with the aim of protecting depositors by ensuring deposits will be repaid even if the bank in which they are held fails. The DGS is administered by the Central Bank of Ireland and funded by member institutions. Covid-19 has no impact on the operation of the Deposit Guarantee scheme.

The scheme protects eligible depositors in the event that a bank, building society or credit union authorised by the Central Bank is unable to pay deposits by paying out the insured amount in case of a bank’s liquidation. It protects deposits up to €100,000 per person per institution. The DGS covers current accounts, deposit accounts, share accounts in banks, building societies and credit unions and credit cards.

In some cases, additional coverage may be provided to certain types of deposits above €100,000, known as “temporary high balances”. These deposits relate to unexpected or once off life events such as the sale of a house, inheritance from an estate, money received from getting married, etc. The additional coverage is up to €1 million per eligible life event and lasts for a period of six months following receipt of a qualifying deposit or from the moment the deposits become legally transferable.

More information on the Deposit Guarantee Scheme is available at “https://www.depositguarantee.ie/”.

Topic – Exchequer & NTMA Transfers

FIN/COVID/4.795/20 by Pearse Doherty T.D. To ask the Minister for Finance expected cash and equity transfers to the Exchequer and NTMA in the years 2020 and 2021 in light of Covid-19

The only cash or equity transfer to be made to the Exchequer in light of the Covid-19 crisis is the drawdown of the Rainy Day Fund (RDF) in 2020. Other transfers, such as the first instalment of the National Asset Management Agency (NAMA) surplus of €2 billion, were due to be made irrespective of the broader economic or fiscal circumstances.

Given the scale of the impact on the economy of Covid-19 it is envisaged that the drawdown, when it happens, will be for the current value of the Fund i.e. €1.5 billion less expenses incurred by the National Treasury Management Agency (NTMA) in managing the Fund. Drawdown of the RDF means that the Exchequer Borrowing Requirement for 2020 is c. €1.5 billion less than would

otherwise be the case. The rationale for having such a Fund – for use in exceptional circumstances such as these – has been strengthened by this crisis.

Due to recent successful debt issuances by the NTMA, there is no immediate need for drawdown and no specific date as to when drawdown will happen.

Topic – Mortgages

FIN/COVID/4.788/20 by Eoin O Broin T.D. To ask the Minister for Finance to state whether any new restrictions have been applied to banks mortgage lending due to the Covid19 crisis, specifically whether there has been an scaling back or reduction in the number of exemptions from the 3.5 loan to income ratio that the banks can apply for.

The Central Bank has advised that no new restrictions have been applied to banks’ mortgage lending by the Central Bank due to the Covid-19 crisis.

The Central Bank of Ireland macro prudential measures on residential mortgage lending provides for certain loan to value (LTV) and loan to income (LTI) restrictions on mortgage lending. The mortgage measures also include a system of ‘allowances’ that permits lenders to provide a certain amount of lending above the stated LTI and LTV limits. Up to 20% of lending to first time buyers and up to 10% of lending to second and subsequent buyers can exceed the 3.5 times LTI limit.

The Central Bank annually reviews the calibration of the lending measures in the context of wider housing and mortgage market developments, to ensure that they continue to meet their objectives of:

 increasing the resilience of banks and borrowers to negative economic and financial shocks and

 dampening the pro-cyclicality of credit and house prices so a damaging credit-house price spiral does not emerge. The measures were last reviewed in December 2019.

The ‘allowances’ are an important feature of the mortgage measures as they allow a certain flexibility to lenders and borrowers. However, the allocation of the allowances is a matter for individual lenders in the context of their own individual credit policies and credit decision making, and they are not a substitute for lenders’ responsibilities to assess affordability, lend prudently and comply with all necessary consumer protection obligations in relation to the provision of residential mortgage credit.

The Central Bank has advised that, while the regulations around the operation of the ‘allowances’ for mortgages have not changed in light of the Covid-19 pandemic, it will continue to ensure that the mortgage measures are functioning as intended, and achieving the system-wide protection of borrowers and lenders by limiting the amount of high LTV and LTI mortgages. More generally the Bank has also indicated that significant action has been taken by it and the ECB, in the form of capital relief and liquidity provision, to enable the banking system to sustainably provide credit to the real economy at this challenging time.

Topic – VAT Hospitality Sector

FIN/COVID/4.483/20 by Christopher O’Sullivan T.D. Will the government reduce the VAT on the hospitality sector to at most 6 percent, scaling it back up to 9 percent by 2023, as part of the recovery?

The Government is fully aware of the unprecedented impact that the coronavirus is having on business and people’s livelihoods. In this regard a range of measures have been introduced to provide income support to those who need it while also giving confidence to employers to retain the link with employees so that when this crisis passes - and it will pass – our people can get back to work as quickly and seamlessly as possible.

In addition to current support measures, my officials are examining a range of possible measures to ensure that the economy is in a position to recover rapidly while maintaining a stable tax base.

Topic – Maternity Leave & TWSS

FIN/COVID/4.126/20 by Jackie Cahill T.D. To ask the Minister for Finance how maternity leave is handled as part of the Employer Wage Subsidy Scheme.

FIN/COVID/4.161/20 by Sean Sherlock T.D. To ask the Minister for Children if they have had regard to the question of pay for those returning from maternity leave as they do not have an annual net weekly pay because they weren't on the pay roll for the required period of January and February. Due to the pausing of the DCYA schemes in particular, the services cannot afford to pay the staff wages and in some cases PUP is less than their weekly wage.

Equality legislation protects women from being disadvantaged due to maternity leave, yet in this instance the woman has been financially disadvantaged due to maternity leave.

FIN/COVID/4.161a/20 by Sean Sherlock T.D. If they have had regard to the question of pay for those returning from maternity leave as they do not have an annual net weekly pay because they weren't on the pay roll for the required period of January and February. Due to the pausing of the DCYA schemes in particular, the services cannot afford to pay the staff wages and in some cases PUP is less than their weekly wage.

FIN/COVID/4.335/20 by Steven Matthews T.D. To ask the Minister for Finance to provide clarity on the position of a constituent; this woman in question was on maternity leave until March 2nd and as such was not on her employer’s payroll on February 29th; her employer fears that if they were to request wage subsidy for her in this instance that they will be forced to repay it and thus far have not claimed it for this employee, leaving her on significantly reduced hours.

FIN/COVID/4.379/20 by Brid Smith T.D. If workers on Maternity leave during the months of Jan and Feb can have their net payments calculated in an alternative manner for inclusion in the wage subsidy scheme, and if they cannot use an alternative period for this calculation , how will he insure workers on maternity leave during that period do not face discriminatory payments under the wage subsidy scheme?

I propose to take Question Nos 4.126/20, 4.161/20, 4.161a/20, 4.335/20 and 4.379/20 from Deputies Cahill, Sherlock, Matthews and Smith together. The questions relate to the Temporary Wage Subsidy Scheme (TWSS) and the eligibility for that scheme of employees who return to work following maternity leave.

The TWSS was legislated for in section 28 of the recently enacted Emergency Measures in the Public Interest (Covid-19) Act 2020. Deputies will be aware that the TWSS is an emergency measure to deal with the impact of the Covid-19 pandemic on the economy. Of necessity, the underlying legislation and the scheme itself were developed very quickly, having regard to the urgent Government objective of getting much needed assistance to employers and employees, where businesses have been seriously affected by the pandemic and the necessary restrictions introduced to fight the spread of the Covid-19 virus. It must be accepted that the TWSS simply cannot be adapted to meet the particular circumstances of individual employers or employees.

In the context of the compelling need for immediate implementation of the TWSS, the scheme necessarily had to build on data returned to Revenue through its real-time PAYE system. The key conditions of the scheme, as prescribed in the underlying law, are that –  the business is suffering significant negative economic impact due to the pandemic,  the employees were on the payroll at 29 February 2020, and  the employer had fulfilled its PAYE reporting obligations for February 2020 by, in general, 15 March 2020.

The latter two conditions were particularly designed with a view to preventing abuse of the scheme. The wage subsidy per employee is calculated based on the net pay reported for January and February 2020. The scheme does not distinguish between ordinary wages, shift allowances, overtime, bonuses or commission or between part-time or full-time employees. Moreover, the scheme has no role in relation to the employer/employee relationship in so far as terms, conditions and entitlements of the employment are concerned.

Accordingly, it follows that the TWSS can only operate in respect of an employee, whether full-time or part-time, who was on the payroll of the employer as at 29 February 2020. Thus, where an individual commenced a new employment after that date, or returned to the payroll of his or her employer after that date following a period of unpaid leave, whether maternity leave or otherwise, he or she does not meet the eligibility criteria with the employer as he or she would not have been on the employer’s payroll at that date.

The question of an individual’s entitlements in an employment context following his or her resumption of duty after a period of unpaid leave, and the question of what wages an employer may or may not be in a position to pay such an employee in the light of the impact of the Covid-19 pandemic on the employer’s business, are matters that are outside the remit of the TWSS.

However, I understand that women who are due to finish statutory maternity leave (paid or unpaid) but cannot return to their employment due to COVID-19 are entitled to the Pandemic Unemployment Payment from when they were due to return to work (maternity leave end date). The "date last worked" for Pandemic Unemployment Payment purposes should be considered to be the date they were due to return to work. Furthermore, I am advised by DEASP that the full suite of employment rights legislation continues to apply to in relation to all employees and their employers for the duration of the crisis and beyond.

Topic – Mortgages

FIN/COVID/4.562/20 by Roderic O’Gorman T.D. To ask the Minister for Finance if consideration has been given to asking the banks to extend the three month mortgage holiday further, in light of the ongoing economic uncertainty, and can he make a statement on the matter.

Following my meeting with Banking and Payments Federation Ireland (BPFI) and the CEOs of the five main retail banks on 18 March last, banks and other lenders put in place a series of measures to support their personal and business customers impacted by the Covid-19 crisis which included a payment break of up to three months on mortgages and other loans.

More recently (30 April) the BPFI announced that the duration of the payment break for Covid-19 impacted borrowers is now increased to six months, and that this extended arrangement will also be available to impacted borrowers who may yet apply for a payment break. (The BPFI statement on this is attached for information: https://www.bpfi.ie/news/bpfi-members-confirm-payment- break-extension-three-months-six-months-directly-impacted-covid-19/).

Topic – Insurance “Business Interruption Policy”

FIN/COVID/4.154/20 by Mary Butler T.D. To ask the Minister for Finance his interaction to date with the Insurance Companies in relation to Business Interruption Policy, for businesses that were asked to close by government as not deemed essential, any progress to date and will he make a statement on the issue.

At the outset, the Deputy should note that I and my officials have been engaging with the insurance industry through Insurance Ireland in an effort to get some much needed certainty for business policyholders. On business interruption claims, I wrote to Insurance Ireland on the 27th of March and indicated amongst other things the following:

(i) insurers should not attempt to reject claims on the basis of interpreting policies to their own advantage. (ii) that where a claim can be made because a business has closed, as a result of a Government direction due to contagious or infectious disease, that the recent Government advice to close a business in the context of COVID-19 should be treated as a direction.

Insurance Ireland, on behalf of its membership, responded on the 3rd of April and stated that it accepted both of my points. It did however indicate that each insurance policy is different and there may well be other factors which lead to the adjudication of whether a business interruption claim is valid or not, other than Government advice to close. In addition, the Deputy should note that the Central Bank wrote to the CEOs of major insurers outlining its expectations of them in this crisis from a consumer protection perspective.

In my letter, I also requested that Insurance Ireland press its members to provide some reliefs to their customers to alleviate the pressures brought on as a result of the current situation and for insurers to have a common approach on how they are supporting their business customers in this difficult time. The outcome of this engagement is an agreement that I announced on the 10th of April whereby most of the key insurers in the Irish market - namely Allianz, AIG, AXA, FBD, Liberty Insurance, RSA, Travelers Insurance and Zurich - will apply the following common measures which will be available to their business customers:

Forbearance • Insurers will reduce premiums for business customers to reflect reduced level of exposure as a result of COVID-19 restrictions for Employer Liability/ Public Liability and Commercial Motor. • Insurers will allow up to 28 days after renewal for payment.

Business Premises • Insurers will maintain cover for unoccupied commercial buildings/ premises not in use due to COVID-19 restriction (for a maximum of 90 days). Appropriate supervision and security of the premises is required. • Insurers will support requests for a change of property use during the crisis.

It is important that businesses contact their insurers or brokers to avail of these offers.

I believe that the above agreement should assist businesses in relation to their insurance. I have asked Insurance Ireland to put in place a mechanism, which will provide proof of delivery on these commitments, and I understand they are working on some type of activity tracker. My officials will also monitor the implementation of it and will have a good insight into how it is being applied through their regular interaction with the Alliance for Insurance Reform.

Following up on from my correspondence, I held a teleconference with Insurance Ireland, on the 17th of April, where I reiterated that some insurers by adopting a “blanket” rejection of all business interruption claims were doing the industry significant reputational damage and were not treating customers fairly. I discussed a range of other insurance related matters on the teleconference and a statement outlining the nature of my engagement with Insurance Ireland was issued by the Department and can be found here: https://www.gov.ie/en/press-release/edabf2-minister- donohoe-emphasises-his-concerns-to-insurance-ireland-regard/

Whilst I strongly believe that insurers should treat their customers honestly, fairly and professionally and honour those elements of the policies covered including business interruption claims in line with the Central Bank’s Consumer Protection Code, it is important to note that neither the Government nor the Central Bank have any role in adjudicating on such matters. If there continues to be a disagreement between an insurer and a policyholder, then the appropriate channels for resolving them must be followed i.e. use of the Financial Services and Pensions Ombudsman or litigation.

Topic – Temporary Wage Subsidy Scheme Rejections

FIN/COVID/4.016/20 by John Lahart T.D. To ask the Minster for Finance is he aware of scenarios whereby Revenue are rejecting applications for the wage subsidy scheme (Details Supplied) and if he will make a statement on the matter

Details: Revenue are rejecting applications to the Temporary COVID-19 Wage Subsidy Scheme based on payroll returns for Jan20 or Feb20 being submitted late (even 1 day late). As an example, the payroll for Feb20 is due to be submitted to Revenue before the 15th of Mar. If this was submitted on the 16th of Mar Revenue are rejecting the application for the scheme. They are not accepting any appeals that I am aware of in relation to this. I know from dozens of colleagues this is an issue across the board. I know the purpose of the scheme is keep people in employment and keep the link with employers. I believe Revenue’s approach, on this particular issue, is against the spirit of the scheme

FIN/COVID/4.042/20 by Jim O’Callaghan T.D. To ask the Minister for Finance whether the Wage subsidy Scheme can be applied in a more purposive way so that Revenue does not reject applications to the Temporary COVID-19 Wage Subsidy Scheme based on payroll returns for Jan20 or Feb20 that may have been submitted late by 1-5 days.

FIN/COVID/4.061/20 by Cian O’Callaghan T.D. It has been raised with me that some applications to the Temporary COVID-19 Wage Subsidy Scheme are being rejected based on payroll returns for Jan 2020 or Feb 2020 being submitted late (even 1 day late).

Can you confirm if payment of the Temporary COVID-19 Wage Subsidy Scheme has been denied because a past payroll return was filed late with Revenue authorities? If this has occurred is the business able to appeal the denial of the Temporary COVID-19 Wage Subsidy Scheme and how should they do so?

As the purpose of the Temporary COVID-19 Wage Subsidy Scheme is to help businesses stay open and retain employees during this crisis, denying payment based on late filings risks the efficacy of the scheme. Once a business closes it is unlikely to reopen and this poses an enormous cost of the economy as well as the personal and financial impact on each individual in that business

FIN/COVID/4.106/20 by Steven Matthews T.D. To ask the minister for Finance if there is any appeals mechanism available to business owners who missed the payroll submission deadline in relation to the Temporary Covid-19 Wage Subsidy Scheme

FIN/COVID/4.109/20 by Joe O’Brien T.D. To ask the Minister for Finance if he is aware that applications for the Temporary COVID-19 Wage Subsidy Scheme are being rejected by Revenue on the basis of payroll returns for January 2020 or February 2020 being submitted late, if an appeals process for these rejections has been considered

given the importance of the scheme in keeping people in employment and in contact with their employees, and if he will make a statement on the matter

FIN/COVID/4.134/20 by Seán Haughey T.D. To ask the Minister for Finance and Public Expenditure and Reform why the revenue commissioners are rejecting applications for the temporary Covid-19 Wage Subsidy Scheme in cases where payroll returns for January 2020 or February 2020 have been submitted late, sometimes by just one day; if he will accept appeals in respect of this scheme; and if he will make a statement on the matter

FIN/COVID/4.242/20 by Mary Lou McDonald T.D. To ask the Minister for Finance if further to Revenue refusing employer applications to the Temporary Wage Subsidy Scheme where February 2020 payroll returns were amended in March and citing a need for legislation change to facilitate these employers he will amend the Emergency Measures in the Public Interest (Covid-19) Act 2020

FIN/COVID/4.245/20 by Paul Donnelly T.D. To ask the Minister to report on why the Revenue are rejecting applications for the temporary COVID-19 wage subsidy scheme based on payroll returns for Jan/Feb being submitted just one day late and why there is no appeals system in place?

FIN/COVID/4.358/20 by Roisin Shortall T.D. To ask the Minister for Finance the justification for excluding employers who have submitted a late payroll return from the Temporary Wage Subsidy Scheme, and whether this matter will be reviewed?

I propose answering questions 4.106/20, 4.042/20, 4.061/20, 4.106/20, 4.109/20, 4.134/20, 4.242/20, 4.245/20 and 4.358/20 from Deputies Lahart, Jim O’Callaghan, Cian O’Callaghan, Matthews, O’Brien, Haughey, McDonald, Donnelly and Shortall together as they all refer to the issue of late filing of payroll returns.

 the employer had fulfilled its PAYE reporting obligations for February 2020 by 15 March 2020. The latter two criteria were particularly designed to prevent abuse and exploitation of the scheme.

Under employment law employers are obliged to issue detailed payslips on payment of wages to employees, while PAYE legislation requires employers to report their payroll to Revenue in real time as the payroll is run. Thus, employers are obliged to report the tax and PRSI deducted from their employees’ wages in real time. The TWSS law also requires employers to provide details of wage subsidy payments to employees on their payslips. These obligations provide important safeguards and visibility for employees in relation to the tax and PRSI that is deducted from, and any wage subsidy added to, their wages.

From reviewing cases since the TWSS started, it has become apparent to Revenue that a number of employers have been unable to access the scheme because they failed the 15 March 2020 rule but had qualified under all other conditions of the scheme and are otherwise tax compliant. Given the overarching purpose and objective of the scheme, Revenue has now, agreed, under its care and management authority provisions, to allow such employers access the scheme provided:  the employees in respect of whom the wage subsidy is claimed were included on the employer’s payroll on 29 February 2020,  the February 2020 payroll submissions were submitted to Revenue before 1 April 2020, and  the payroll submissions for all previous months were submitted to Revenue before 15 March 2020. Where a business qualifies for the TWSS under the revised criteria, the wage subsidies under the scheme will be payable for eligible employees in respect of payroll submissions made on or after 24 April 2020, with a pay date on or after 24 April 2020, and cannot and will not be made retrospective.

Further information is available at: https://www.revenue.ie/en/corporate/communications/documents/twss-extended-deadline- feb2020-payroll-submissions.pdf .

Finally, any queries in relation to the operation of the scheme should be submitted via Revenue’s myEnquiries system.

Topic – Reporting to Revenue

FIN/COVID/4.715A/20 by Richard Boyd Barrett T.D. To Finance to advise how a person reports an incidence of bogus self - employment to Revenue

Revenue has advised me that it conducts a comprehensive range of interventions to combat all types of tax evasion. This includes a clear focus on disguised employment and challenging the inappropriate classification of workers as self-employed contractors.

Persons wishing to report incidences of bogus self-employment, or any other type of tax evasion, can do so through an online reporting facility, which is available at the following link; https://www.ros.ie/online-enquiry-web/goodCitizen. The link is fully secure and operates in the strictest confidence. Alternatively, persons can report such incidences by writing directly to their local tax office. Due to COVID-19 related restrictions, Revenue cannot receive telephone calls at this time.

Revenue has also advised me that, due to taxpayer confidentiality, it cannot report back on the outcome of any action taken on foot of information provided.

Topic – Temporary Wage Subsidy Scheme

FIN/COVID/4.188/20 by Ged Nash T.D. To ask the Minister for Finance what percentage of TWSS employees are receiving top-ups in companies categorised according to the number employees being paid through TWSS by the employer (e.g. 1-2;3-5;….250+); and if he will make a statement on the matter.

FIN/COVID/4.247/20 by Pearse Doherty T.D. To ask the Minister for Finance the number of employees now eligible for the Temporary Wage Subsidy Scheme, disaggregated by net weekly payments with intervals of €50, and if he will make a statement on the matter

FIN/COVID/4.458/20 by Michael McGrath T.D. To ask the Minister for Finance to confirm to confirm how much has been paid out to date as an exchequer liability in respect of Temporary Wage Subsidy Scheme, and if he will make a statement on the matter.

FIN/COVID/4.850/20 by Brid Smith T.D. To detail the numbers of companies accessing the Wage Subsidy Scheme who are providing no top up to their employees.

FIN/COVID/4.851/20 by Brid Smith T.D. To detail the numbers of companies who are accessing the wage subsidy scheme who are continuing their work operations and whose employers continue to work for a period each week

I propose answering questions 4.188/20, 4.247/20, 4.458/20, 4.850/20 and 4.851/20 from Deputies Nash, Doherty, McGrath and Smith together as they all relate to statistics for the Temporary Wages Subsidy Scheme.

Revenue published an initial set of statistics on the operation of the COVID-19 Temporary Wage Scheme Subsidy (TWSS) on 9 April 2020. These were updated and extended on 17 April and again on 23 April and are available at link: https://www.revenue.ie/en/corporate/information-about-revenue/statistics/number-of- taxpayers-and-returns/covid-19-wage-subsidy-scheme-statistics.aspx.

The data includes the cost of the scheme to date, wage information on employees and breakdowns of employers and employees in receipt of payments. Table 11 of the 23 April statistics shows the available breakdown of employees in receipt of TWSS that are also in receipt of top up payments from their employers.

Revenue has confirmed that it is continuing to undertake further analysis of TWSS and will publish updated and expanded statistics on a regular basis. These updates will be published at the link noted above.

Topic – Travel Insurance

FIN/COVID/4.337/20 by Cathal Crowe T.D. I am writing in relation to a query I have regarding the refunding or suspension of travel insurance for anyone that has taken out Travel Insurance for this year. Due to the ban on travel it seems only fair that we consider the above as we have done so for other areas.

I am aware that a large number of people have had their travel plans impacted by the pandemic and may have had to cancel or postpone their trips, as a result of travel advice from the Department of Foreign Affairs and Trade (DFAT). In that regard, I understand that current DFAT advice recommends against all non-essential travel overseas until further notice. In the circumstances, I believe that people should follow this advice and other public health directions that are in place at the moment.

In terms of these types of travel insurance policies, I understand that they generally cost less than €100 for the year for an individual, however this price will depend on a number of factors, such as age, type of travel, etc. Family policies may cost more. Generally, these type of polices will cover any amount of trips within the year, so long as those trips meet the terms and conditions of the policy taken out. These policies tend to work out a lot cheaper than if the person were to take out travel insurance for each individual trip taken within the year, in circumstances where the person is a frequent traveller. Given the nature of these policies being of an annual nature, I understand that where a person decides to cancel the policy prior to its expiration, that they will generally not be able to get a refund. Notwithstanding this, the terms and conditions of these policies will vary and consumers should check their policies.

Insurance Ireland has informed my Department that those customers who wish to cancel their annual travel policy should get in touch with their insurer and inform them accordingly. However, they note that if the policy is associated with a trip that is scheduled for later in the year then this may not be advisable as travel may be possible at that date. I believe that this is an important consideration as new travel insurance policies will likely revise the terms and conditions in relation to exclusions linked to COVID-19, which may not exist in pre-existing policies.

With regard to the refunding or suspension of such policies as a result of the current travel advice, as Minister for Finance, I do not have powers to direct insurers to do so. Having said that, I think it would be fair that insurers consider offering suspensions or refunds on these types of policies on a case-by-case basis, particularly if it appears that the travel advice will not change in the short term, thereby depriving customers of the benefits of these policies. The Deputy will be aware that in my engagements with the insurance industry since the emergence of this pandemic, I have set out clearly my expectations that insurers must engage with consumers honestly, fairly and professionally in line with the Central Bank’s Consumer Protection Code. The views expressed

above are consistent with this. I would note also that the Central Bank, in its role, also set out its expectations of insurers in dealing with customers, which I believe is relevant in this instance also.

Finally, the Deputy should note that my officials will continue to engage with the sector and review this and other insurance issues that may arise.

Topic – Scéimeanna Revenue

FIN/COVID/4.344/20 by Éamon Ó Cuív T.D. Chun a fhiafraí den Aire Airgeadais an bhfuil íocaíochtaí faoin na scéimeanna leasa shoisialaigh nó faoi na scéimeanna Revenue a tugadh isteach faoi reachtaiocht eigeandála de bharr na géarchéime Covid-19 incháinithe faoin gcóras cáin ioncaim; agus an ndéanfaidh sé raiteas ina thaobh

Tá tréithe ioncaim ag íocaíochtaí de chuid an Íocaíocht Dífhostaíochta Phaindéim COVID-19 agus an Scéim Fóirdheontais Shealadaigh Pá, mar sin dlitear cáin ioncaim orthu i gcomhréir le bunphrionsabail.

Leanann an Íocaíocht Dífhostaíochta Phaindéim an riail ghinearálta maidir le íocaíochtaí leasa shóisialaigh, mar sin tá sí díolmhaithe ó ASPC agus ón Muirear Sóisialta Uilíoch.

Ní bhaileofar cáin i “bhfíor-ama” faoin gcóras Íoc Mar A Thuillir (ÍMAT) fad is atá na scéimeanna i bhfeidhm chun tacaíocht airgeadais a thabhairt d’oibrithe atá buailte chomh tapaidh agus gur féidir.

Ina áit sin, socrófar an dliteanas cánach trí athbhreithniú ag deireadh na bliana. Dhearbhaigh Revenue dom go nglacfaidh said cur chuige cothrom agus solúbtha i leith bailiú aon cháin atá dlite ar na íocaíochtaí seo.

Topic – VAT

FIN/COVID/4.113/20 by Frank FeighanT.D. To ask the Minister for Finance to clarify with Revenue if businesses who have had to close their doors due to a Government order during COVID19 are being penalised by Revenue for being unable to pay January and February’s VAT as a result, what processes are involved in assisting these businesses who will not be able to make these payments for January and February as a result of COVID19 and if he will make a statement on the future. I am advised by Revenue that its approach to the COVID-19 pandemic is to engage with all businesses and sectors that are suffering downturn due to the virus and to assist them in every way possible.

The actions taken by Revenue to date to assist businesses include the suspension of all debt enforcement action until further notice, maintaining tax clearance status for all businesses over the coming months, prioritising the processing of tax repayments/refunds and the automatic suspension of interest on late payments for SMEs in respect of January/February and March/April VAT liabilities as well as February, March and April PAYE (Employers) liabilities.

The suspension of interest on late payment in respect of those VAT and PAYE (Employer) periods is also available to larger businesses but is managed through direct engagement that optimises the good working relationships that exist between them and the relevant case managers in Revenue’s Large Cases Division (LCD) and Medium Enterprise Division (MED).

To further assist businesses with cashflow difficulties, Revenue has developed an online phased payment facility, which is available on a 24/7 basis through the Revenue Online Service (ROS). This facility affords businesses considerable flexibility to self-manage their tax payment schedule in line with their operating needs or temporary cashflow challenges. For example, a taxpayer may opt to defer a payment in the phased arrangement or apply to suspend the arrangement for up to six months.

Revenue has assured me that it has not penalised any business for the non-payment of either January/February or March/April VAT due to the COVID-19 pandemic, nor has it done so in respect of the February to April PAYE (Employer) periods.

Finally, Revenue urges all businesses to continue to file their tax returns on time even if payment is not immediately possible. Where the full information required to complete the returns is not readily available, they should be filed on a best estimate basis. Revenue has assured me that any subsequent changes can be done on a self-correction basis without incurring any penalties

Topic – Temporary Wage Subsidy Scheme

FIN/COVID/4.332/20 by Brendan Griffin T.D. Please see the following email I received from (details supplied) in respect of the Wage Subsidy Scheme. I would be grateful if these issues could be examined.

I am accountant in practice here (details supplied) looking after SME’s businesses, I am a fan of the subsidy scheme but the matters below are causing difficulties for our clients

1. The scheme is biased against the quarterly payroll schemes, whilst there may be not too many of the schemes out there, they are being discriminated against, why is this the case if the plan is to keep people off unemployment benefit. 2. Employers and agents need to be provided with a detailed statement when the subsidy is paid, I am getting a lot of queries from clients who can’t trace what is being paid to them regarding the breakdown of the subsidy per employee, a statement will avoid phone lines and revenue staff being taken up with these queries. 3. I have 2 employers sme’s who did not process their payroll on their system but paid staff in January/February – these are being excluded from the scheme because they did not process the jan/feb payroll until April. Revenue will have to relax the rules on this as again it is forcing staff on the unemployment benefit. I know that they are in breach of real time processing but forebearance will need to be shown

The scheme is great for employers to use but these issues need to be rectified, I would appreciate your response at your earliest

Keep up the good work, Kind regards The Government’s priority in so far as the Temporary Wages Subsidy Scheme (TWSS) is concerned was and is to ensure that all employers experiencing significant negative economic disruption from

COVID-19 can register for and start to receive payment quickly. The overarching ambition of the scheme is to ensure the key relationship between employers and employees is maintained to the greatest extent possible so that businesses can restart operations quickly once the crisis has passed.

In the context of the compelling need for immediate implementation of the TWSS, the scheme necessarily had to build on data returned to Revenue through its real-time PAYE system. The key criteria for eligibility for the scheme, as prescribed in the underlying law, are that – • the business is suffering significant negative economic impact due to the pandemic, • the employees were on the payroll at 29 February 2020, and • the employer had fulfilled its PAYE reporting obligations for February 2020 by 15 March 2020. The latter two criteria were particularly designed to prevent abuse and exploitation of the scheme.

From reviewing cases since the TWSS started, it has become apparent to Revenue that a number of employers have been unable to access the scheme because they failed the 15 March 2020 rule but had qualified under all other conditions of the scheme and are otherwise tax compliant. Given the overarching purpose and objective of the scheme, Revenue has now, agreed, under its care and management authority provisions, to allow such employers access the scheme provided: • the employees in respect of whom the wage subsidy is claimed were included on the employer’s payroll on 29 February 2020, • the February 2020 payroll submissions were submitted to Revenue before 1 April 2020, and • the payroll submissions for all previous months were submitted to Revenue before 15 March 2020. Where a business qualifies for the TWSS under the revised criteria, the wage subsidies under the scheme will be payable for eligible employees in respect of payroll submissions made on or after 24 April 2020, with a pay date on or after 24 April 2020, and cannot and will not be made retrospective.

As I have said, the TWSS cannot be tailored to meet the particular individual circumstances of every single employer or employee. Given the mechanism for operation of the TWSS, Revenue have advised me that where an employer makes quarterly payroll submissions, the necessary reporting requirements will not be met as the payroll frequency must be either weekly, fortnightly or monthly. If an employer only pays their employees once a quarter, and there were no wage payments in January or February, there are no payments on which to base the subsidy. There are no plans to make alterations to the scheme as set out in this regard.

In example 3, while the businesses in question paid their staff wages in January and February, they seem to have failed to notify Revenue of the payroll runs in question until April. This seems to have been a clear and deliberate breach of the PAYE legislation, which requires employers to report their payroll to Revenue in real time as the payroll is run. As I said, the PAYE reporting obligations built into the eligibility criteria for the TWSS were designed in particular to prevent abuse of the scheme. It is not proposed to make any further concessions in relation to compliance with those reporting requirements for the purposes of qualification for the TWSS.

Finally, I am advised by Revenue that it has worked with the payroll software developers since the announcement of the TWSS to allow the developers to make the required changes to allow employers operate this scheme through their payroll software. All employers can view the total amount of the wage subsidy refunded in their Statement of Account on Revenue’s on-line system (ROS). Revenue are currently working on making enhancements to the IT system to provide a view on ROS of each J9 payslip submitted under the TWSS and the amount of the wage subsidy refunded in respect of the employee in relation to the payslip in question.

Further information is available at https://www.revenue.ie/en/corporate/communications/documents/twss-extended-deadline- feb2020-payroll-submissions.pdf .

Finally, any queries in relation to the operation of the scheme should be submitted via Revenue’s myEnquiries system.

Topic – Temporary Wage Subsidy Scheme

FIN/COVID/4.063/20 by Fergus O'Dowd T.D. To ask the Minister for Finance if he will amend wage subsidy scheme and/or associated regulations in order for the below situations to be rectified and safeguard employers and employees under the Covid Wage Subsidy Scheme.

(Details Supplied) I am an accountant working with many business that are currently struggling with the Covid19 pandemic, assisting them trying to manage cash flow as well as employees and wages.

The new Temporary Wage Subsidy Scheme is welcome in that regard and will assist many business. The basic principal of it is to maintain contact between employer and employee as well as reducing the burden on DEASP processing claims for unemployment benefit.

However there is a condition of the scheme which is causing a lot of issues and ruling many employees ineligible through no fault of their own. The scheme says that for an employee to be

eligible “That all eligible employees are included on a payroll submission with a pay date in the month of February made by the employer in the period from 1 February 2020 to 15 March 2020”. Unfortunately due to employers being late in uploading payroll details to ROS (this is particularly relevant for monthly payroll runs whereby the payment date for February PAYE is not until 23rd March), employees are being put as a distinct disadvantage through no fault of their own and are being ruled ineligible for the scheme by Revenue. I have spoken to Revenue who have confirmed that they are rejecting a lot of applications on this basis but that they are simply operating within the rules of the scheme which I accept. However the spirit of the scheme was not to rule such employees ineligible and this must be changed or relaxed immediately or a lot of businesses will simply go under and we will get increased numbers signing onto social welfare who may never return to the workforce when this pandemic passes. There is also the loss of contact with employers.

I have an example whereby a client of mine wishes to apply for the scheme and is willing to top up the employee’s wages as is permitted by the scheme. This means that the employees will be able to continue to afford their mortgages, pay their bills etc. and thus keep some sort of normality in terms of the economy. In addition my client will have the employees work reduced hours to do stock takes, update systems, repair items of plant and generally be ready to hit the ground running as a business when the pandemic passes. Unfortunately my client was slow at giving us the information to file his returns and whilst those returns are now filed and paid to Revenue, his employees are now ineligible which means that he has to lay them off, they have to make application to DEASP, they have to put their mortgages on hold for 3 months and the cost to the state is greater than it should be. In addition my clients business must cease completely and will not be ready to hit the ground running when the pandemic clears. These are serious consequences of a missed deadline and disproportionate to the offence.

I wanted to bring this matter to your attention in the hope that you might be able to raise it with the relevant Minister as it needs to be addressed urgently to avoid employees suffering and not getting paid this week and next as well as longer term issues as mentioned above.

I look forward to hearing from you.

 the employer had fulfilled its PAYE reporting obligations for February 2020 by 15 March 2020. The latter two criteria were particularly designed to prevent abuse and exploitation of the scheme.

From reviewing cases since the TWSS started, it has become apparent to Revenue that a number of employers have been unable to access the scheme because they failed the 15 March 2020 rule but had qualified under all other conditions of the scheme and are otherwise tax compliant. Given the overarching purpose and objective of the scheme, Revenue has now, agreed, under its care and management authority provisions, to allow such employers access the scheme provided:  the employees in respect of whom the wage subsidy is claimed were included on the employer’s payroll on 29 February 2020,  the February 2020 payroll submissions were submitted to Revenue before 1 April 2020, and  the payroll submissions for all previous months were submitted to Revenue before 15 March 2020. Where a business qualifies for the TWSS under the revised criteria, the wage subsidies under the scheme will be payable for eligible employees in respect of payroll submissions made on or after 24 April 2020, with a pay date on or after 24 April 2020, and cannot and will not be made retrospective.

Further information is available at https://www.revenue.ie/en/corporate/communications/documents/twss-extended-deadline- feb2020-payroll-submissions.pdf

Finally, any queries in relation to the operation of the scheme should be submitted via Revenue’s myEnquiries system.

Tithe an Rialtas. Sráid Mhuirfean Uacht, Baile Átha Cliath 2, D02 R583, Éire Government Buildings, Upper Merrion Street, Dublin 2, D02 R583, Ireland

T:+353 1 676 7571 @IRLDeptFinance www.gov.ie/finance