Nov 19, 2021

Revenue has suspended ongoing compliance checks on employers that are receiving Employment Wage Subsidy Scheme (EWSS) supports in recognition of the extremely busy filing period for taxpayers and their accountants. Tax officials told Chartered Accountants Ireland (CAI) earlier this week it was not sending out new compliance check letters until at least Monday, after the extended pay-and-file deadline today. Revenue is also not seeking responses on other communications until next week, leaving firms and tax agents to complete important income-tax documents on time. The one-week enforcement hiatus follows a specific request from CAI, which has been lobbying Revenue and the Companies Registration Office (CRO) for extensions to filing deadlines due to Covid-19 disruptions. It comes amid a long-running risk-based assessment of the EWSS to ensure that businesses in receipt of the State money are eligible for the payments and are using it for wages as required. Companies screened as part of the review receive a letter that requires a response within seven days – under threat of losing their benefits if they don’t. Read More Sign Up Accountants have been warning for months that all this added paperwork, amid the pressures of dealing with Covid-19 work restrictions, would make it very difficult or even impossible for companies and their clients to meet filing deadlines. However, a similar request made to the CRO was rejected, with companies advised to apply to the district court to seek an order for a deadline extension if they were unable to file annual returns by November 25. Companies that miss Revenue and CRO deadlines face financial penalties and possible audits. Finance Minister Paschal Donohoe announced an extension of EWSS to the end of April in Budget 2022. Employers who wish to keep getting wage supports next year will have to once again prove their eligibility to Revenue, this time with full-year financial results. However, once qualified to receive the payments in the new year, businesses will no longer have to provide monthly figures or projections to remain eligible. EWSS payments are due to be tapered from December from a maximum €350 per employee plus PRSI exemption to just a €100 flat payment. Business groups representing pubs, restaurants, retail and small businesses are demanding an extension of full EWSS payments now that the Government has decided to reintroduce restrictions on the night-time economy while telling office workers to stay at home.