Finance (Covid-19 and Miscellaneous Provisions) Act 2022

1. Definitions

1. In this Act—

“Act of 1997” means the Taxes Consolidation Act 1997;

“Act of 2020” means the Emergency Measures in the Public Interest (Covid-19) Act 2020;

“Minister” means the Minister for Finance.

2. Amendment of section 28B of Act of 2020

2. (1) Section 28B of the Act of 2020 is amended—

(a) in subsection (1), by the substitution of the following definition for the definition of “qualifying period”:

“‘qualifying period’ means the period commencing on 1 July 2020 and expiring—

(a) in respect of an employer to which subsection (2D) applies, on 31 May 2022, and

(b) in respect of any other employer to which this section applies, on 30 April 2022;”,

(b) in subsection (2B), by the insertion of “in respect of the employer” after “expires”,

(c) by the insertion of the following subsections after subsection (2B):

“(2C) Subject to subsections (4) and (5), this section shall apply to an employer for the period from 1 January 2022 to the date on which the qualifying period expires in respect of the employer where—

(a) in accordance with guidelines published by the Revenue Commissioners under subsection (20)(a), the employer demonstrates to the satisfaction of the Revenue Commissioners that, by reason of Covid-19 and the disruption that is being caused thereby to commerce, there will occur in the period from 1 December 2021 to 31 January 2022—

(i) in the case where the commencement of the operation of the employer’s business occurred before 1 May 2019, at least a 30 per cent reduction, or such other percentage reduction as the Minister may specify in an order made by him or her under subsection (21)(b), in either the turnover of the employer’s business or in the customer orders being received by the employer by reference to the period from 1 December 2019 to 31 January 2020, and

(ii) in the case where the commencement of the operation of the employer’s business occurred on or after 1 May 2019, at least a 30 per cent reduction, or such other percentage reduction as the Minister may specify in an order made by him or her under subsection (21)(b), in either the average monthly turnover of the employer’s business or in the average monthly customer orders being received by the employer by reference to the average monthly turnover of the employer’s business or the average monthly customer orders being received by the employer—

(I) in the period from 1 August 2021 to 30 November 2021 (in this subparagraph referred to as ‘the reference period’), or

(II) in the case where the business of the employer has not operated for the whole of the reference period, in the part of the reference period in which the business has operated,

and

(b) the employer satisfies the conditions specified in subsection (3).

(2D) (a) This subsection shall apply to an employer where—

(i) public health restrictions applied to the business of the employer in the relevant period, and

(ii) the conduct of that business was directly impacted by reason of the terms in which those public health restrictions stood in the relevant period being different from how they stood immediately before that period by virtue of the relevant amendments.

(b) In this subsection—

‘public health restrictions’ means restrictions for the purpose of preventing, or reducing the risk of, the transmission of Covid-19 provided for in the Health Act 1947 (Section 31A - Temporary Restrictions) (Covid-19) (No. 2) Regulations 2021 (S.I. No. 217 of 2021);

‘relevant amendments’ means Regulations 5 to 8 of the Health Act 1947 (Section 31A - Temporary Restrictions) (Covid-19) (No. 2) (Amendment) (No. 22) Regulations 2021 (S.I. No. 736 of 2021);

‘relevant period’ means the period from 20 December 2021 to 22 January 2022.”,

(d) in subsection (3), by the substitution of “subsection (2)(b), (2A)(b), (2B)(b) or (2C)(b) ” for “subsection (2)(b), (2A)(b) or (2B)(b) ”,

(e) by the insertion of the following subsection after subsection (5):

“(5A) Where, by virtue of subsection (2C), an employer is an employer to which this section applies—

(a) the employer shall, if it has not already done so before the date of the passing of the Finance (Covid-19 and Miscellaneous Provisions) Act 2022, as soon as practicable review its business circumstances as they were on 31 January 2022, and

(b) if, based on the result of that review or of such a review carried out before the date of the passing of the Finance (Covid-19 and Miscellaneous Provisions) Act 2022, it is manifest to the employer that the outcome referred to in subparagraph (i) or (ii), as the case may be, of subsection (2C)(a) that had previously been envisaged would occur did not, in fact, occur,

then—

(i) the employer shall, if it has not already done so before the date of the passing of the Finance (Covid-19 and Miscellaneous Provisions) Act 2022, as soon as practicable log on to ROS and declare that, as on and from 1 February 2022, the employer ceased to be an employer to which this section applies, and

(ii) on and from 1 February 2022, the employer shall have ceased to be an employer to which this section applies and shall not represent that its status is otherwise than as referred to in this subparagraph nor cause the Revenue Commissioners to believe it to be so otherwise.”,

(f) by the substitution of the following subsection for subsection (8):

“(8) Subject to subsections (9), (21)(aa) and (21)(c), the wage subsidy payment payable by the Revenue Commissioners to an employer in relation to a qualifying employee shall be—

(a) in the case where—

(i) the employer is not an employer to which subsection (2D) applies and the date of the payment of the emoluments by the employer to the qualifying employee is in the period beginning on 1 July 2020 and ending on 19 October 2020 or the period beginning on 1 February 2022 and ending on 28 February 2022, or

(ii) the employer is an employer to which subsection (2D) applies and the date of the payment of the emoluments by the employer to the qualifying employee is in the period beginning on 1 July 2020 and ending on 19 October 2020 or the period beginning on 1 March 2022 and ending on 31 March 2022,

the sum of—

(I) €151.50 per contribution week, where the employer pays the qualifying employee gross pay of at least €151.50 per week but not more than €202.99 per week, and

(II) €203 per contribution week, where the employer pays the qualifying employee gross pay of at least €203 per week but not more than €1,462 per week,

(b) in the case where—

(i) the employer is not an employer to which subsection (2D) applies and the date of the payment of the emoluments by the employer to the qualifying employee is in the period beginning on 20 October 2020 and ending on 31 January 2022, or

(ii) the employer is an employer to which subsection (2D) applies and the date of the payment of the emoluments by the employer to the qualifying employee is in the period beginning on 20 October 2020 and ending on 28 February 2022,

the sum of—

(I) €203 per contribution week, where the employer pays the qualifying employee gross pay of at least €151.50 per week but not more than €202.99 per week,

(II) €250 per contribution week, where the employer pays the qualifying employee gross pay of at least €203 per week but not more than €299.99 per week,

(III) €300 per contribution week, where the employer pays the qualifying employee gross pay of at least €300 per week but not more than €399.99 per week, and

(IV) €350 per contribution week, where the employer pays the qualifying employee gross pay of at least €400 per week but not more than €1,462 per week,

and

(c) in the case where—

(i) the employer is not an employer to which subsection (2D) applies and the date of the payment of the emoluments by the employer to the qualifying employee is in the period beginning on 1 March 2022 and ending on 30 April 2022, or

(ii) the employer is an employer to which subsection (2D) applies and the date of the payment of the emoluments by the employer to the qualifying employee is in the period beginning on 1 April 2022 and ending on 31 May 2022,

the sum of €100 per contribution week, where the employer pays the qualifying employee gross pay of at least €151.50 per week but not more than €1,462 per week.”,

(g) in subsection (10)—

(i) by the substitution of “in any of the income tax months July 2020 to June 2022” for “for an income tax month”, and

(ii) in paragraph (b), by the substitution of “in any of the income tax months December 2020 to June 2022” for “subsequent to the income tax month December 2020”,

(h) in subsection (17), by the substitution of “(2), (2A), (2B) or (2C)” for “(2), (2A) or (2B)” in both places where it occurs,

(i) in subsection (20)(a), by the substitution of “(2), (2A), (2B) or (2C)” for “(2), (2A) or (2B)”, and

(j) in subsection (21)—

(i) in paragraph (aa), by the substitution of “31 May 2022” for “30 April 2022”, and

(ii) in paragraph (b), by the insertion of “or subparagraphs (i) and (ii) of subsection (2C)(a) ”, after “clauses (I) to (III) of subsection (2)(a)(i), (2A)(a)(i) or (2B)(a)(i) ”.

(2) Subsection (1), other than paragraph (e), shall be deemed to have come into operation on 1 January 2022.

3. Exemption in respect of Pandemic Special Recognition Payment

3. The Act of 1997 is amended in Chapter 1 of Part 7 by the insertion of the following section after section 192J:

“192K. (1) In this section—

‘qualifying individual’ means an individual who is in receipt of a qualifying payment;

‘qualifying payment’ means a payment, generally referred to and commonly known as the Pandemic Special Recognition Payment, which is made, by or on behalf of the Minister for Health to a qualifying individual, further to the decision of the Government of 19 January 2022.

(2) Subject to subsection (4), a qualifying payment made to a qualifying individual on or after 1 January 2022 shall be exempt from income tax and shall not be reckoned in computing the total income of the qualifying individual for the purposes of the Income Tax Acts.

(3) A qualifying payment shall be deemed not to be a payment to which Chapter 4 of Part 42 applies.

(4) The exemption provided for in subsection (2) shall apply to a maximum amount of €1,000 for each qualifying individual.”.

4. Amendment of section 485 of Act of 1997

4. (1) Section 485 of the Act of 1997 is amended—

(a) in subsection (1)—

(i) by the substitution of the following definition for the definition of “relevant business activity”:

“‘relevant business activity’, subject to subsection (1A), has the meaning assigned to it in subsection (4);”,

and

(ii) by the insertion of the following definitions:

“ ‘approved body of persons’ has the same meaning as in section 235;

‘charity’ has the same meaning as in section 208;”,

(b) by the insertion of the following subsection after subsection (1):

“(1A) (a) Where a charity carries on a trade, the profits or gains arising from which would be chargeable to tax under Case I of Schedule D but for section 208(2)(b), that trade shall be regarded as a relevant business activity for the purposes of this section.

(b) Where an approved body of persons carries on a trade, the profits or gains arising from which would be chargeable to tax under Case I of Schedule D but for section 235(2), that trade shall be regarded as a relevant business activity for the purposes of this section.”,

(c) in subsection (3)(c), by the substitution of “40” for “25”,

(d) in subsection (4)—

(i) in paragraph (a)—

(I) by the substitution of the following definition for the definition of “average weekly turnover from the new relevant business activity”:

“‘average weekly turnover from the new relevant business activity’ means—

(i) in relation to a category A new relevant business activity, the average weekly turnover of the person, carrying on the activity, in respect of the new relevant business activity in the period commencing on the date on which the person commenced the business activity and ending on 12 October 2020, or

(ii) in relation to a category B new relevant business activity, the average weekly turnover of the person, carrying on the activity, in respect of the new relevant business activity in the period commencing on the date on which the person commenced the business activity and ending on 1 August 2021.”,

(II) by the substitution of the following definition for the definition of “new relevant business activity”:

“‘new relevant business activity’ means a category A new relevant business activity or a category B new relevant business activity, as the case may be;”,

and

(III) by the insertion of the following definitions:

“‘category A new relevant business activity’ means, in relation to a person, a relevant business activity commenced by that person on or after 26 December 2019 and before 13 October 2020;

‘category B new relevant business activity’ means, in relation to a person, a relevant business activity commenced by that person on or after 13 October 2020 and before 27 July 2021;”,

and

(ii) in paragraph (b)(i), by the substitution of “40” for “25”,

(e) in subsection (8)(b)—

(i) in subparagraph (i):

(I) by the substitution of “(referred to in this paragraph and in subsection (8A) as the ‘restart week’)” for “(referred to in this paragraph as the ‘restart week’)”, and

(II) by the substitution of “may, subject to subsection (8A), elect” for “may elect”,

and

(ii) in subparagraph (ii), by the substitution of “Subject to subsection (8A), the period” for “The period”,

(f) by the insertion of the following subsection after subsection (8):

“(8A) The period that a qualifying person may elect to treat as a Covid restrictions extension period for the purposes of paragraph (b)(i) of subsection (8) shall be a period of one week from the date on which the restart week commences in a case where—

(a) the restart week commences on or after 20 December 2021, and

(b) the election is made in respect of—

(i) a trade carried on by the qualifying person which is regarded as a relevant business activity as provided for in subsection (1A), or

(ii) a relevant business activity and the turnover of the qualifying person in respect of the relevant business activity for any claim period commencing on or after 20 December 2021 and ending before the day the restart week commences is greater than 25 per cent (but not greater than 40 per cent) of the relevant turnover amount.”,

(g) in subsection (14)(a)(ii), by the substitution of the following clause for clause (VI):

“(VI) where a business activity is—

(A) a category A new relevant business activity, the date of commencement of the activity and the amount of turnover in respect of the new business activity beginning on the date of commencement and ending on 12 October 2020, or

(B) a category B new relevant business activity, the date of commencement of the activity and the amount of turnover in respect of the new business activity beginning on the date of commencement and ending on 1 August 2021,”,

and

(h) in subsection (22)(b), by the substitution of “40” for “25”.

(2) Subsection (1) shall be deemed to have come into operation on 20 December 2021.

5. Amendment of section 991B of Act of 1997

5. Section 991B of the Act of 1997 is amended—

(a) in subsection (1)—

(i) by the substitution of “Subject to subsection (1A), in this section” for “In this section”, and

(ii) by the insertion of the following definition:

“‘Covid-19 entitlement’ means an entitlement to payment of an amount under—

(a) section 485,

(b) section 28B of the Emergency Measures in the Public Interest (Covid-19) Act 2020,

(c) any of the following schemes:

(i) the scheme commonly known as the Live Performance Support Scheme Strand II;

(ii) the scheme commonly known as the Live Performance Support Scheme Phase 3;

(iii) the scheme commonly known as the Live Performance Restart Grant Scheme;

(iv) the scheme commonly known as the Live Local Performance Support Scheme;

(v) the scheme commonly known as the Commercial Entertainment Capital Grant Scheme;

(vi) the scheme commonly known as the Music and Entertainment Business Assistance Scheme;

(vii) the scheme commonly known as the Attractions and Activity Tourism Operators Business Continuity Scheme 2022;

(viii) the scheme commonly known as the Strategic Tourism Transport Business Continuity Scheme 2022;

(ix) the scheme commonly known as the Strategic Ireland Based Inbound Agents Tourism Business Continuity Scheme 2022;

(x) the scheme commonly known as the Tourism Accommodation Providers Business Continuity Scheme 2022;

(xi) the scheme commonly known as the Sustaining Enterprise Fund;

(xii) the scheme commonly known as the Accelerated Recovery Fund;

(xiii) the scheme commonly known as the Support for Licensed Outbound Travel Agents and Tour Operators;

(xiv) the scheme commonly known as the Temporary Covid-19 Supports for Commercial Bus Operators,

or

(d) a scheme designated for the purpose of this paragraph by order of the Revenue Commissioners under subsection (1B);”,

(b) by the insertion of the following subsections after subsection (1):

“(1A) Where an employer has a Covid-19 entitlement—

(a) which arises out of circumstances occurring in a period falling between 1 January 2022 and 30 April 2022, or

(b) which arises out of circumstances occurring in a period falling prior to 1 January 2022, resulting in an amount becoming payable to the employer between 1 January 2022 and 30 April 2022,

then, in this section—

‘Period 1’, in relation to the employer, means the period—

(a) beginning on the later of—

(i) the first day of the income tax month immediately preceding the income tax month in which the employer’s business was first adversely affected by Covid-19, and

(ii) 1 February 2020,

and

(b) ending on 30 April 2022;

‘Period 2’, in relation to the employer, means the period beginning on 1 May 2022 and ending on 30 April 2023;

‘Period 3’, in relation to the employer, means the period beginning on 1 May 2023 and ending on the day on which the employer has discharged the Covid-19 liabilities in full.

(1B) The Revenue Commissioners may designate by order a scheme for the purpose of paragraph (d) of the definition of ‘Covid-19 entitlement’ in subsection (1), where they are satisfied that the scheme is similar in nature and objective to a scheme referred to in paragraph (c) of that definition.”,

and

(c) by the substitution of the following subsection for subsection (5):

“(5) An inspector, or such other officer as the Revenue Commissioners have nominated for the purposes of section 990, may make such enquiries as he or she considers necessary to satisfy himself or herself as to whether an employer—

(a) is unable to pay all or part of the employer’s Covid-19 liabilities, or

(b) has a Covid-19 entitlement—