The Finance (COVID-19 and Miscellaneous Provisions) Bill 2022 (“the Spring Finance Bill”) was published by the Department of Finance on Friday, 4 March 2022. The Bill will give legislative effect to the changes to the Covid support schemes, announced by the Government, in response to the public health restrictions, introduced from 21 December 2021 into January 2022. These include changes to, and extension of:
- the Employment Wage Subsidy Scheme (EWSS),
- the Covid Restrictions Support Scheme (CRSS),
- the Tax Debt Warehousing Scheme,
- the application of the waiver of excise duty for special exemption orders for late licences from 26 January until 30 April 2022, and
- provides that the Covid-19 recognition payment recognition payment for healthcare workers will not be subject to tax.
These measures are being implemented by the Revenue Commissioners on an administrative basis, pending this Bill.
A small number of other changes in the taxation and financial areas are also included in the Bill including:
Stamp Duty – Properties designated as cost rental dwellings
The Bill provides for a partial repayment of stamp duty charged at the higher rate of 10 percent for residential properties that are designated by the Minister for Housing, Local Government and Heritage as “cost rental dwellings” subsequent to being acquired. It is hoped that this measure will support the delivery of social and affordable housing in the State.
Tax treatment of payments made under the proposed voluntary Brexit Whitefish Fleet Decommissioning Scheme
The Minister for Agriculture, Food and the Marine has proposed compensating fishers to voluntarily decommission fishing vessels in order to rebalance and maintain sustainability of the Irish fishing fleet in light of transfers of quota shares to the UK under the Trade and Cooperation Agreement (TCA) between the EU and UK. The TCA has had a significant negative impact on the fishing opportunities available to the Irish fleet. The Bill will provide for the tax treatment of payments made under the Scheme.
Central Bank Registers
The Bill makes provision for the funding of the Central Bank Central Mechanism for Information on Safe-Deposit Boxes and Bank and Payment Account and in the operation of the Register of Beneficial Ownership of Certain Financial Vehicles which are required as part of the transposition of EU anti-money laundering Directives.
Announcing the publication of the Spring Finance Bill, Minister for Finance, Paschal Donohoe commented:
“I welcome the publication of this legislation today and I look forward to discussing it in the Oireachtas as soon as possible. The Bill provides the legislative basis for the extended and increased supports announced by the Government when public health restrictions were introduced in December as well as supports announced in January as businesses re-opened. These supports have been vitally important to businesses throughout the pandemic and it is important that the necessary legislation is put in place as soon as possible. I have also taken the opportunity to address a small number of other measures in this Bill such as, providing that the Pandemic Recognition Payment will be tax-free as agreed by Government, stamp duty changes to provide for a partial repayment scheme for properties designated as cost rental dwellings, the tax treatment of payments made under the proposed Brexit Whitefish Fleet Decommissioning Scheme being introduced by the Minister for Agriculture, Food and the Marine, and funding of certain Central Bank registers required as part of the transposition of EU anti-money laundering Directives.”
For more on the Spring Finance Bill, read the full release by the Department of Finance.
Latest Exchequer figures show that tax receipts continue to record strong growth
Latest Exchequer figures show that tax revenues to the end of February were €10.1 billion, a 20 per cent increase on the prior year and 10 per cent higher than the same period in 2020. Income tax receipts of €4.7 billion were recorded, a 17 percent annual increase, while VAT receipts were up 10 percent compared to 2020 figures. The Exchequer surplus at the end of February was €0.9 billion, compared to a deficit of €0.7 billion in the same period last year. The 12-month rolling balance records a deficit of €5.7 billion.
Commenting on the latest figures, Minister for Finance, Paschal Donohoe said:
“Today’s figures show that tax receipts continue to record strong growth in the opening months of this year. While the annual comparisons are flattered due to a number of factors, the underlying trends are a good signal of the continued momentum in the domestic economy. The strong income tax performance reflects the ongoing recovery in the labour market, alongside continued wage increases in sectors less affected by the pandemic, while the significant increase in VAT receipts is driven by the rebound in consumer spending.
"While recent trends are positive, we cannot become complacent. It is crucial that we continue to make progress along the road to recovery. Budget 2022 set a framework within which we can reduce the deficit and restore the public finances, while continuing to invest heavily in public services, particularly in capital infrastructure."
Read the Government’s full press release for more information.
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