Paul Murphy (Dublin South West, RISE)
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378. To ask the Minister for Finance the investigations that have been carried out to uncover fraud in relation to the employer Covid-19 refund scheme, the temporary wage subsidy scheme or the employment wage subsidy scheme; if fraud has been identified to date; and the actions that will be taken in relation to fraud discovered. [51161/21]

Paschal Donohoe (Dublin Central, Fine Gael)
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The Temporary Wage Subsidy Scheme (TWSS) was introduced on 26 March 2020 and it replaced the Employer Covid-19 Refund Scheme. The TWSS closed at the end of August 2020 when it was replaced by the Employment Wage Subsidy Scheme (EWSS) with effect from 1 September 2020.

I am advised by Revenue that since June of last year, a programme of compliance checks on employers who participated in the TWSS scheme has been undertaken, to ensure that such employers were properly eligible to receive monies and that the supports were properly paid out to qualifying employees. Revenue further advise that an investigation is initiated where following an examination of a taxpayer’s affairs, Revenue believes that serious tax or duty evasion may have occurred or a Revenue offence may have been committed and have confirmed that no such interventions have been initiated on foot of a TWSS compliance check.   

Revenue have confirmed that to date, compliance checks have been completed in respect of 64,740 employers, representing more than 99.6% of total employers in the scheme, with the remainder of such checks in progress.  The compliance checks initiated have shown very high levels of compliance with the TWSS requirements by employers, with approximately 2% of total employers in the scheme having had to repay the TWSS subsidy as they failed to meet the requirements of the scheme but did not fraudulently participate in the TWSS.  Settlements in relation to those employers found to be ineligible totalled €28.6m.

Revenue is undertaking a multi-faceted approach to compliance checks to safeguard the integrity of the EWSS since the scheme commenced on 1 September 2020.   This includes undertaking real time checking of PAYE compliance of employers availing of the scheme, and cross-referencing claim data against other Revenue data sources to identify anomalies or trends requiring attention.   The real time review procedures are supported by a real time engagement with employers, to facilitate timely resolution of issues, to ensure employers claim the correct EWSS entitlement or cease claiming where they no longer have an entitlement.   

Revenue is also carrying out a risk-focused follow-up program of compliance interventions in accordance with The Code of Practice for Revenue Audit and Other Compliance Interventions.  I am advised that in most instances, agreement is reached and EWSS overpaid is recouped.   Where issues are identified and agreement is not reached, Revenue will raise an EWSS notice of assessment and employers have the option to submit an appeal to the Tax Appeals Commission (TAC) within 30 days of the receipt of the notice of assessment.  

Revenue have completed compliance checks on 5,762 employers and have reclaimed EWSS of €10.4m.  Compliance checks on an additional 1,603 employers are ongoing, plus investigations of 11 employers where the most egregious behaviour has been identified. I am advised by Revenue that in high-risk cases, currently involving 346 employers of €3.48m EWSS claims, payment of EWSS is suspended pending satisfactory conclusion of the Revenue intervention. Action on high risk and egregious cases, includes liaison with the Department of Social Protection and An Garda Síochána, as appropriate.   

The Deputy will be aware that EWSS will continue to operate up until 30 April 2022 and during the remaining period of operation I am advised that Revenue will continue to undertake a risk focused approach to EWSS claim processing and will continue to be very proactive in identifying and challenging EWSS fraud.