Turnover recovers €350m after verification of compliance with wage subsidies

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Revenues recovered nearly 350 million euros in overpayments and wrongly claimed subsidies for companies that received wage aid during the pandemic.

published in Revenue’s annual report on Wednesday showed that thousands of businesses received too much money in the initial phase of the Temporary Wage Subsidy Scheme (TWSS) in 2020 and had to repay it last year.

A smaller number of companies, however, received millions in payments they were not entitled to accept, revenue uncovered during compliance checks.

Most of the money recovered by tax officials – 308 million euros – was recovered during a reconciliation process.

A parallel process of compliance checks on the same scheme revealed that around 1,800 employers had received €32 million in grants for which they were not eligible.

A total of €324 million was collected through the two processes.

Revenue said there was generally a “high level of compliance” from employers registered with TWSS and that the 1,800 ineligible businesses accounted for less than 3% of the total.

The tax administration also had to carry out compliance interventions with 3,500 companies benefiting from the employment wage subsidy program (EWSS), which replaced the TWSS in August 2021.

These real-time checks, which had been a feature of the EWSS from the start, led to the collection of €19.2 million in refunds of wrongfully distributed funds, or just 0.3% of all grants paid. in the program.

Amounts clawed back from wage subsidies were dwarfed by nearly €1.4 billion in revenue from its normal audit and compliance response activities, the largest on record.

Most of that money came after Revenue launched ancillary petitions – targeted interventions aimed at particular risk factors – which generated nearly a billion euros in unpaid debt.

Meanwhile, the local property tax brought in 551 million euros, less than the health insurance tax which accounted for 809 million euros in tax revenue last year.

Corporate tax, the largest tax category accounting for nearly a quarter of all revenue, or 15.3 billion euros in 2021, is dominated by foreign multinationalsnals, the top 10 paying more tax than all native Irish businesses combined.

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