Eoin Ó Broin (Dublin Mid West, Sinn Fein)
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40. To ask the Minister for Finance the number of 2020 pandemic unemployment payment recipients who were liable for taxation in each week from the week ending 15 January 2021 to date in tabular form. [15997/21]

Paschal Donohoe (Dublin Central, Fine Gael)
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The Pandemic Unemployment Payment (PUP) is a social welfare payment for workers who have become unemployed due to the COVID-19 pandemic. PUP payments are classified in legislation as income supports and are subject to income tax. The taxation arrangements for the PUP were legislated for in Finance Act 2020 which reflects the standard approach to taxation of social welfare type payments, which means they are liable to income tax but exempt from the Universal Social Charge (USC) and Pay Related Social Insurance (PRSI).

I am advised by Revenue that the PUP was not taxed in ‘real-time’ in the normal manner in 2020, meaning the collection of any tax due was deferred until year end. This approach was based on both a requirement to get payments to people as quickly as possible and an expectation at the time that the emergency supports would be short-term in nature, which turned out not to be the case due to the continued prevalence of COVID-19.  Tax liabilities on PUP received in 2020 will be collected, interest free, by reducing the employees’ tax credits over 4 years, starting in January 2022.

I am further advised by Revenue that Statements of Liability in respect of 2020 issued to over 465,000 taxpayers from 15 January 2021 to 19 March 2021. Of these, 156,342 were related to taxpayers who received Pandemic Unemployment Payments (PUP) during 2020. The breakdown of these cases includes 100,680 (64%) that overpaid tax and received a refund, 6,968 (4%) that paid the correct amount of tax and 48,694 (32%) that underpaid tax.

The table below sets out the weekly numbers balanced, overpaid, and underpaid from 22 January 2021. The numbers received prior to 22 January are included in that date.