Pearse Doherty (Donegal, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

327. To ask the Minister for Finance the number of individual earners who do not qualify for the stay and spend initiative on the grounds that they have neither income tax nor USC liabilities; and if he will make a statement on the matter. [20407/20]

Pearse Doherty (Donegal, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

328. To ask the Minister for Finance the number of individual earners who have neither USC nor income tax liabilities (details supplied).Details; in similar format to that given in Tables 3 and 4 of Income Tax Strategy Group – 19/03 Paper, published July 2019 [20408/20]

Paschal Donohoe (Dublin Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I propose to take Questions Nos. 327 and 328 together.

The tables referred to by the Deputy in question 328, which is regularly used in Tax Strategy Group paper on Income Tax (most recently in 2019), is based on data that is presently set out on page 3 of the Revenue Ready Reckoner at the following link:

. 

Attention is drawn to the caveat at the beginning of this document that makes clear that the costings shown are based on revised tax forecasts, that they are tentative costings and likely to be revised as further information becomes available particularly in the current economic climate.

This source table is re-produced here as follows:

*Shows the breakdown by the highest rate of Income Tax and USC paid by taxpayer unit.

** Married persons or civil partners who have elected or who have been deemed to have elected for joint assessment are counted as one tax unit.

The figures in this table are subject to rounding to the nearest hundred.

In respect of question 349, based on the above data it is estimated that 715,600 taxpayer units will not have an income tax or USC liability in 2020 so it is possible that they may not be able to benefit from the Stay and Spend Incentive. However, I would highlight that this estimate is based on data that was published in May 2020 and is derived from Revenue’s tax modeller which is prospective in nature, based on the most recent tax return data (for 2017) modelled forward using the most up-to-date forecast data produced by the Department of Finance (April 2020).

Pearse Doherty (Donegal, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

329. To ask the Minister for Finance the deadlines by which qualifying expenditure must be submitted to the Revenue Commissioners using the mobile app under the stay and spend initiative for a tax credit to be received by a person in 2021 and 2022, respectively; and if he will make a statement on the matter. [20410/20]

Pearse Doherty (Donegal, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

330. To ask the Minister for Finance the company awarded the public contract to develop the mobile app for the purposes of the stay and spend initiative; the cost of same; and if he will make a statement on the matter. [20411/20]

Paschal Donohoe (Dublin Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I propose to take Questions Nos. 329 and 330 together.

I am advised by Revenue that qualifying expenditure in relation to the Stay and Spend tax credit will be submitted to Revenue using the RevApp. This information will then be used to prepopulate the individual’s tax return to facilitate a claim being made for this tax credit. All claims must be made within 4 years after the year in which the qualifying expenditure was incurred.

The RevApp, which was launched in 2016, is a free mobile app, provided by Revenue to assist taxpayers to record and keep track of receipts for expenses. For example, it can be used to track health expenses and expenses relating to trading or rental income, and it can also be used for other documents. Storing the receipts on the RevApp negates the requirement for taxpayers to keep paper copies of such receipts.

Revenue is currently in the process of redeveloping the RevApp and upgrading its technology. This work, which is estimated to cost €72,000, commenced earlier this year. The work is being undertaken internally by Revenue’s Information Technology Division and, thus, was not subject to a public procurement process. The development of an interface specifically for the Stay and Spend initiative will be a minor enhancement to work already in progress.

For the 2020 tax year, the Stay and Spend tax credit will be determined by reference to the qualifying expenditure incurred between 1 October 2020 to 31 December 2020. For the 2021 tax year, the period during which qualifying expenditure may be incurred is 1 January 2021 to 30 April 2021. Under the measure the maximum tax credit available in respect of 2020 and 2021 is €125 per claimant, and €250 in the case of jointly assessed couples.

Finally, I am advised by Revenue that they will issue detailed guidance material on this measure in the coming weeks.

Gerald Nash (Louth, Labour)
Link to this: Individually | In context | Oireachtas source

332. To ask the Minister for Finance his plans to set a maximum duration for individual companies availing of the proposed employment wage subsidy scheme; if a review and compliance audit will be included; and if he will make a statement on the matter. [20472/20]

Gerald Nash (Louth, Labour)
Link to this: Individually | In context | Oireachtas source

333. To ask the Minister for Finance his plans for a broader compliance and auditing of the proposed employment wage subsidy scheme; and if he will make a statement on the matter. [20473/20]

Gerald Nash (Louth, Labour)
Link to this: Individually | In context | Oireachtas source

350. To ask the Minister for Finance the number of compliance inspections for the temporary wage subsidy scheme; the number of Departmental staff who have been assigned to compliance duties; and if he will make a statement on the matter. [20490/20]

Paschal Donohoe (Dublin Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I propose to take Questions Nos. 332, 333 and 350 together.

I do not propose to set a maximum duration for individual companies to avail of the proposed employment wage subsidy scheme (EWSS).

However, I would point out to the Deputy that the proposed EWSS legislation contains a number of important safeguards and flexibilities in so far as the scheme’s operation and effectiveness is concerned.  I am required under the proposed law to monitor the scheme and to have economic assessments made every 2 months, having regard to data from the Live Register, the State’s receipts and expenditure, data relating to the impact of Covid-19 and the impact of Brexit in the event of there being no trade agreement with the UK.  Following such an assessment and following consultation with my colleagues, the Minister for Public Expenditure and Reform and the Minister for Social Protection, it is my duty under the proposed law to determine if the proposed expiry date of the EWSS requires extension, if the prescribed test for employer eligibility for the EWSS needs adjustment and, lastly, if the rates of subsidy and/or the income thresholds associated with the rates of subsidy need adjustment.  Where I so determine that one or more such actions is or are required, I will make the appropriate order or orders, which will be brought before the House for approval.

I should also point out that the proposed EWSS legislation requires that immediately at the end of each month, from August 2020 onwards, each employer availing of the scheme must carry out a self-review of its business circumstances.  Following such review, if it is manifest to the employer that it no longer will meet the eligibility test for qualification for the scheme, namely, at least a 30 per cent reduction in business turnover or customer orders in the period from 1 July to 31 December 2020 by reference to the corresponding 2019 period, then the employer must immediately cease claiming wage subsidy payments.

The administration of the EWSS will be placed under the care and management of Revenue, as was done with its predecessor, the Temporary Wage Subsidy Scheme (TWSS). The Deputy will be aware of Revenue’s ongoing compliance programme relating to the TWSS. While Revenue’s focus on the EWSS in its early stages will no doubt be concentrated on getting the scheme up and running and ensuring that all employers who are eligible for subsidy payments receive the payments quickly, I have no doubt but that Revenue will, in due course, undertake an appropriate employer compliance campaign relating to the EWSS.

In relation to the Deputy’s queries on the Temporary Wage Subsidy Scheme, I am advised by Revenue that, due to the number of employers involved, the compliance checks are being carried out on a phased basis over the next few months. To date, checks have been initiated on some 15% of employers availing of the TWSS, encompassing almost 40% of employees supported by the scheme. Revenue has also confirmed to me that approximately 600 staff are involved in the programme at this stage.

I am further advised by Revenue that, to date, the response to the compliance checks has been very positive. Most of the employers contacted have provided a prompt and satisfactory response to Revenue’s information requests. As I advised the Deputy previously, a relatively small number of cases have been escalated to a more detailed examination by Revenue and these enquiries are ongoing.

Gerald Nash (Louth, Labour)
Link to this: Individually | In context | Oireachtas source

334. To ask the Minister for Finance his plans to protect the employment wage subsidy scheme from significant waste and abuse of funds in view of the warning from his officials regarding the temporary wage subsidy scheme; and if he will make a statement on the matter. [20474/20]

Paschal Donohoe (Dublin Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

The legislation contained in the Financial Provisions (Covid-19)(No.2) Bill provides that certain elements, such as the turnover test threshold, may be revised in the event that there is an opportunity to make changes that minimise deadweight while also fulfilling the objective of supporting employment as well as enabling employers scale back up their business.

The new Section 28B subclause (6) that is introduced by Section of that Bill contains the specific provision that recognises that, as Minister for Finance I have a duty to monitor the EWSS and have regular assessment carried out to determine whether it is necessary to adjustment the level of certain elements of the scheme, having consulted with the Minister for Social Protection and the Minister for Public Expenditure and Reform Public Expenditure and updating as appropriate by secondary legislation.  The specific elements are:

- the end date of the measure;

- the rate of subsidy and applicable income threshold per employee; and

- the turnover test to determine qualifying employers.

In additional, the legislation requires that immediately at the end of each month, from August 2020 onwards, each employer availing of the scheme must carry out a self-review of its business circumstances.  Following such review, if it is manifest to the employer that it no longer will meet the eligibility test for qualification for the scheme, namely, at least a 30 per cent reduction in business turnover or customer orders in the period from 1 July to 31 December 2020 by reference to the corresponding 2019 period, then the employer must immediately cease claiming wage subsidy payments.

Finally, the administration of the EWSS will be placed under the care and management of Revenue, as was done with its predecessor, the Temporary Wage Subsidy Scheme (TWSS). While Revenue’s focus on the EWSS in its early stages will no doubt be concentrated on getting the scheme up and running and ensuring that all employers who are eligible for subsidy payments receive the payments quickly, I expect that Revenue will, in due course, undertake an appropriate employer compliance campaign relating to the EWSS similar to the compliance exercise currently being undertaken in relation to the Temporary Wage Subsidy Scheme.

Gerald Nash (Louth, Labour)
Link to this: Individually | In context | Oireachtas source

335. To ask the Minister for Finance his plans for training or job transfer measures as part of the employment wage subsidy scheme as is included in the German scheme; his plans to ensure eligibility to the scheme is conditional on the production of agreed training and reskilling plans of each employee to improve the comparatively low rate of in-work training and increase productivity here; and if he will make a statement on the matter. [20475/20]

Gerald Nash (Louth, Labour)
Link to this: Individually | In context | Oireachtas source

336. To ask the Minister for Finance his plans to protect existing workers from displacement or loss of income from the employment wage subsidy scheme; his plans to exclude temporary agency workers, those holding a work contract with another employer and trainees from the new scheme; and if he will make a statement on the matter. [20476/20]

Gerald Nash (Louth, Labour)
Link to this: Individually | In context | Oireachtas source

337. To ask the Minister for Finance his plans to ensure compulsory and conditional top-ups to the full amount of an employee's pre-existing wage for those employers availing of the employment wage subsidy scheme; and if he will make a statement on the matter. [20477/20]

Gerald Nash (Louth, Labour)
Link to this: Individually | In context | Oireachtas source

338. To ask the Minister for Finance his plans to make access to the employment wage subsidy scheme conditional on respect for workers' rights such as no outstanding or unimplemented WRC adjudications of Labour Court recommendations, compliance with an ERO if applicable and commitment to collective bargaining and-or collective agreements; and if he will make a statement on the matter. [20478/20]

Gerald Nash (Louth, Labour)
Link to this: Individually | In context | Oireachtas source

340. To ask the Minister for Finance the measures that are being put in place to ensure employees in firms availing of the employment wage subsidy scheme are protected from economic dismissal; if employers availing of the scheme will be obliged to inform workers' representatives and Revenue in the case of a planned dismissal; if they will lose the wage subsidy for such workers during the agreed notice period; and if he will make a statement on the matter. [20480/20]

Gerald Nash (Louth, Labour)
Link to this: Individually | In context | Oireachtas source

341. To ask the Minister for Finance his plans for a clawback mechanism in cases in which an employer availing of the employment wage subsidy scheme makes over 20% of staff redundant when using the scheme in circumstances in which the redundancies were not agreed with a recognised trade union; and if he will make a statement on the matter. [20481/20]

Paschal Donohoe (Dublin Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I propose to take Questions Nos. 335, 336, 337, 338, 340 and 341 together.

Section 2 of the Financial Provisions (Covid-19) (No. 2) Bill 2020 makes provision for the introduction of the Employment Wage Subsidy Scheme (EWSS) which will ultimately replace the Temporary Wage Subsidy Scheme (TWSS). Both schemes will run in parallel from 31 July 2020 until the TWSS ceases at the end of August 2020. Employers who have already availed of the TWSS may make an additional claim for non-TWSS employees in the EWSS from 31 July. This is to provide additional flexibility in circumstances where employees were not previously eligible to be paid via TWSS, such as new hires and seasonal workers. If applicable, some claims may be backdated for employees who have been paid from 1 July 2020.

The EWSS is a stand-alone measure to support firm viability through an unprecedented enterprise environment and it is based on clear, objective criteria that may be determined by the Revenue Commissioners.

Concerns around manipulation of access to the EWSS have been addressed to the greatest extent possible and it is not appropriate to link qualification for the EWSS with matters that are more appropriate for employment law or training bodies.

The position in relation to the EWSS and the TWSS does not affect any legal obligations that the employer may have to their employee as regards any terms, conditions or entitlements of their employment, including pay, sick pay or pension schemes.

Subsection 2(6) of Section 2B of the Financial Provisions (Covid-19) (No. 2) Bill 2020 has safeguards in place. It states that except for bona fide commercial reasons, an employer cannot access the EWSS if they have laid off a qualifying employee and replaced them with two or more qualifying employees who work less hours with the aim of increasing the number of qualifying employees so that they can get an increased subsidy payment.

Anything beyond that would be expressly outside of the remit of the Revenue Commissioners, but there are a sufficient number of bodies that deal with employment disputes in Ireland and where there is a high amount of expertise including the Workplace Relations Commission and the Labour Court. There are already checks and balances in place to ensure fairness to employees and employers.

Further, the proposed legislation requires that immediately at the end of each month, from August 2020 onwards, each employer availing of the EWSS must carry out a self-review of its business circumstances. Following such review, if it is manifest to the employer that it no longer will meet the eligibility test for qualification for the scheme, namely, at least a 30 per cent reduction in business turnover or customer orders in the period from 1 July to 31 December 2020 by reference to the corresponding 2019 period, then the employer must immediately cease claiming wage subsidy payments.

Finally, the administration of the EWSS will be placed under the care and management of Revenue, as was done with its predecessor, the TWSS. The Deputy will be aware of Revenue’s ongoing compliance programme relating to the TWSS. While Revenue’s focus on the EWSS in its early stages will no doubt be concentrated on getting the scheme up and running and ensuring that all employers who are eligible for subsidy payments receive the payments quickly, Revenue will, in due course, undertake an appropriate employer compliance campaign relating to the EWSS.