Cormac Devlin (Dún Laoghaire, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

205. To ask the Minister for Finance the efforts his officials have made in view of the revised ECB guidance on Covid-19 moratoria for loans to ensure this is being implemented for businesses and consumers in Ireland; and if he will make a statement on the matter. [43042/20]

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

I assume the Deputy is referring to the European Banking Authority who published a statement on 2December on the reactivation of guidelines on payment breaks. These guidelines relate to how banks treat loans that have availed of payment breaks for regulatory purposes. These guidelines were previously in force until 30 September 2020.

In September, the Tánaiste, Minister for Public Expenditure and Reform and I met with the retail banks and the Banking and Payments Federation of Ireland (BPFI) who agreed to provide suitable supports, both short term and longer term, to borrowers who are experiencing difficulties on a case-by-case basis.

Many borrowers can and are returning to a position where they can repay their loans; however, many borrowers will be unable to return to full repayments, and these borrowers will require further support. Payment breaks are available on a case-by-case basis as one of a suite of measures lenders offer to customers facing difficulties. The different lenders have options in place to support borrowers including for business borrowers and mortgage holders. These include interest only, partial payments or breaks to payments if appropriate.

Each lender will show flexibility and borrowers who need help with repayments or have concerns about their abilities to repay loans should contact their lender in the first instance. The Money Advice and Budgeting Service (MABS) is also available to help anyone who wishes to have an objective and non-judgmental discussion on their options.

I will continue to work with the Central Bank, as regulator, to ensure that the Central Bank consumer protection framework will be fully available to borrowers that will still need support due to the economic impact of Covid-19.

The Central Bank remains focused on ensuring that lenders are appropriately supporting borrowers whose incomes have been negatively affected by the pandemic. The Central Bank outlined its expectations to all lenders on how they should be supporting borrowers who are experiencing financial distress arising from the Covid-19 pandemic, and is supervising lenders to ensure that these expectations are met.

Marc MacSharry (Sligo-Leitrim, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

206. To ask the Minister for Finance the position of eligibility to the new CRSS from sports clubs with a bar registered under the Clubs Act 1904 and so on as it seems the system of the Revenue Commissioners is refusing such applications; the reason this should be as the CRSS was projected as a replacement for the Department of Enterprise, Trade and Employment local authority reopening scheme which did apply to sports clubs; and if he will make a statement on the matter. [43055/20]

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

The CRSS is a targeted support for businesses significantly impacted by restrictions introduced by the Government under public health regulations to combat the effects of the Covid-19 pandemic. The support is available to companies, self-employed individuals and partnerships who carry on a trade or trading activities, the profits from which are chargeable to tax under Case I of Schedule D, from a business premises located in a region subject to restrictions introduced in line with the Living with Covid-19 Plan.

To qualify under the scheme a business must, under specific terms of the Covid restrictions, be required to either prohibit or significantly restrict, customers from accessing their business premises to purchase goods or services, with the result that the business either has to temporarily close or to operate at a significantly reduced level. Details of CRSS were published in the Finance Bill 2020 and detailed operational guidelines on the scheme have been published on the Revenue website at: .

Businesses whose trading profits are exempt from the charge to tax under Case I of Schedule D do not meet the eligibility criteria for CRSS.

A sports club that has been granted a sports body exemption (an approved sports body) is exempt from paying Corporation Tax or Income tax on any income received where the income is used for the purpose of promoting the game or sport. Such income would include income from a bar registered under the Clubs Act 1904 by a sports club. As an approved sports body is not chargeable to tax under Case I of Schedule D in respect of its trading profits, it will not qualify for CRSS. An approved sports bodies is not exempt from Value Added Tax (VAT) or payroll taxes and may be entitled to financial support under other measures put in place by the Government, including the Employment Wage Subsidy Scheme (EWSS). An approved sports body may also be eligible under the Debt Warehousing Scheme to ‘park’ certain VAT and PAYE (Employer) liabilities and any excess payments received under the Temporary Wage Subsidy Scheme (TWSS).

A sports club that does not have a sports body exemption and which has income, for example from a gym, bar or restaurant trade, subject to tax under Case I of Schedule D may be eligible for CRSS for periods of restrictions where that business meets the qualification criteria for the scheme. Under nationwide Level 5 restrictions which applied from 22 October 2020 to 1 December 2020, gyms, bars and restaurants were required to prohibit or significantly restrict customers from accessing their business premises, and therefore such businesses would have been eligible to register and claim for CRSS were the qualification criteria was met.

There has been an easing of restrictions on businesses, with a phased move to Level 3 restrictions nationally from 1 December, with some restrictions easing from 4 December and 18 December respectively. Since 1 December, gyms have been allowed to reopen for individual use and from 4 December, cafes, restaurants and bars which serve substantial meals prepared onsite are allowed to open for indoor dining. In most cases therefore, a gym, restaurant or bar serving substantial meals prepared on site, operating from the sports club premises were no longer required to prohibit or significantly restrict, customers from accessing their business premises from 1^stor 4^thDecember as appropriate, and therefore do not qualify for CRSS from that date.

Where a business is reopening after a period of restrictions, they will be eligible to claim an additional week’s support under CRSS (referred to as a ‘restart week’) to assist the business in meeting the costs of reopening.