Bernard Durkan (Kildare North, Fine Gael)
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209. To ask the Minister for Finance if it transpired that a person (details supplied) is deemed not to qualify for assistance under the employment wage subsidy scheme which in turn may push them into liquidation; if the matter can be urgently considered; and if he will make a statement on the matter. [31645/22]

Paschal Donohoe (Dublin Central, Fine Gael)
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Section 28B of the Emergency Measures in the Public Interest (Covid-19) Act 2020 provides for the Employment Wage Subsidy Scheme (EWSS) which is an economy-wide enterprise support for eligible businesses in respect of eligible employees. The scheme closed with effect from 31 May 2022.

As the Deputy will be aware, eligibility to EWSS is based on the employer demonstrating that its business is likely to experience a 30% reduction in turnover or orders during a specific reference period and that this disruption to business is caused by the Covid-19 pandemic. In addition, the business must also have tax clearance. The eligibility criteria set down in the legislation provides that where a business commenced trading in 2019 (but not later than 1 November 2019), it must be able to demonstrate at least a 30% reduction in either turnover or customer orders by comparing the trading months in 2019 to the equivalent months in 2021.

I am advised by Revenue that the question of whether a business is commencing or is the continuation of an existing business is determined by the facts of the case rather than through EWSS legislation. A substantial body of existing case law, in the wider tax context, exists on this issue and certain principles have been established. These established principles include whether the management and control, employees, activities, customer base, suppliers, and accounting systems of the business are substantially the same following any change in activity.

Revenue have clarified that EWSS legislation, specifically Section 28B Financial Provisions (Covid-19) (No. 2) Act 2020, makes references to "employer's business". Therefore, tests for eligibility are performed on an employer’s business, not separate service offerings or diversification of services but the business as a whole. As such, actual turnover for 2019, i.e. 1 January 2019 to 31 December 2019, instead of projections, is used to compare to turnover in periods that EWSS was claimed to determine eligibility. As the employer (details supplied) has not met the eligibility criteria of EWSS that requires a business to have suffered a 30% reduction in turnover as a result of Covid-19, Revenue has advised the company they need to correct all payroll submissions for periods where the EWSS has been incorrectly claimed and repay any relevant EWSS amounts and PRSI credits it has claimed.

Revenue works closely with businesses to put in place arrangements appropriate to the circumstances and viability of each business in order to secure payment of any debt over a reasonable timeframe. In addition, certain tax and other Revenue debts, including overpayments of EWSS, may be deferred or ‘warehoused’ if a business is unable to pay these debts as a consequence of the impact of COVID-19. The scheme allows businesses who are eligible for the warehousing scheme to defer paying such debts until 1 January 2023 (or 30 April 2023 in certain circumstances) and applies a lower interest rate of 3% per annum on the repayment of such warehoused debts after that date.

I am further advised by Revenue that it has engaged extensively with the Business in question and confirmed that it has made them aware of Revenue’s Complaint and Review Procedures and will continue to work with this business to facilitate it in paying its Revenue liabilities.