Full Revenue probes for firms with TWSS issues
Thousands of companies have been contacted over their eligibility, writes Samantha McCaughren
THE Revenue Commissioners have contacted 5,000 companies about their eligibility for the Temporary Wage Subsidy Scheme (TWSS), with those deemed to have abused the scheme set to face an in-depth probe into their financial affairs.
Last month Revenue announced a compliance programme which will cover all companies which availed of the support. It was a surprise to tax advisers as Revenue had originally said it would take a risk-based approach to compliance in relation to TWSS, which would have meant only firms which sparked some concerns would have faced further checks.
To date, the scheme has provided more than €2bn in support to more than 62,000 employers in respect of 611,000 employees. Around 405,000 employees are receiving support through the scheme.
In a written response to a parliamentary question from deputy Steven Matthews, Finance Minister Paschal Donohoe said: “Where a business was clearly not eligible for the scheme or failed to pay the correct level of subsidy to its employees, or abused the scheme in any other way, there will be a requirement to repay the funds received.
“Any identified abuse of the TWSS will also lead to a more in-depth examination of the employer’s overall tax position.”
In a statement to the Sunday Independent, Revenue said it expects letters to employers “will confirm that the vast majority of employers are fully compliant in their operation of the TWSS. We have had a very positive and prompt response from many employers contacted as part of the programme to date. However, as the programme is expected to last for several months, no further detailed information is available at this time.”
Meanwhile, CCAB-I, an umbrella group for several accounting organisations, wrote to Revenue to raise concerns about the fact that all employers would be targeted in the compliance campaign.
“The employers’ compliance programme is far more extensive than the risk-based compliance approach noted in Revenue’s guidance. While it is understood that Revenue have a duty to ensure that TWSS payments are only paid to eligible employers, taxpayers also have a right to consistent information on how the scheme operates,” it said.