Government measures in key jurisdictions 3rd edition final - Flipbook - Page 65
Ireland
Litigation
Are the courts
operating?
The Courts Service has announced that measures are being put in place to extend the range of business
which can be conducted either by way of remote hearing or
physically in courtrooms. The Supreme Court and Court of Appeal are continuing to operate primarily by
way of remote hearing. In the High Court, three courts in the Four Courts complex are available daily for
remote hearings and seven other courts are available daily for physical hearings. 8 additional case types
have been added to the list of urgent matters, including personal and corporate insolvency matters and the
commercial, chancery and non-jury lists. It is not currently possible to hear cases which involve oral
testimony in the High Court but a further announcement is expected in the coming week setting out when,
where and to what extent such cases may recommence.
The Circuit Court is continuing to deal with urgent matters and civil matters which have been adjourned
since March are now being allocated hearing dates subject to the submission of a case management
questionnaire. Possession cases continue to be adjourned until October at the earliest due to the
Government moratorium. The District Court is dealing with urgent civil matters only. Details of the various
announcements
can be found here and further updates are expected.
Tax
•
Irish Revenue have implemented a temporary wage subsidy scheme (“TWSS”) which enables
certain employers to retain certain staff while at the same time paying staff nothing or a top-up on
the Revenue subsidy paid by the Irish Revenue. The scheme was expected to last 12 weeks from 26
March but has now been extended until 31 August and from 4 May is based on each employee’s
normal net weekly pay. Businesses re-opening, who were not previously registered for the scheme,
can now apply to join the scheme, provided they meet the eligibility criteria. The wage subsidy is
available to support employees where their pre-Covid salary was greater than €76,000, and their
post-Covid salary has fallen below €76,000, subject to their net pay not exceeding €960 per week.
The subsidy payment is not subject to income tax through payroll but is taxed at year end. As
at 18th June 2020, there were over 61,300 employers registered for the TWSS and
over 551,800 employees had received at least one payment under the TWSS. The majority of
employers registered for the scheme have less than 20 staff enrolled for TWSS and in 87% of cases
employers are topping up the employees’ salary.
•
SMEs experiencing cash flow and/or trading difficulties can defer payment of March/April and
May/June VAT returns (due on 23 May and 23 July, respectively) and April, May and June payroll
taxes. Non-SMEs are being encouraged to talk to Revenue with a view to similar deferments if
experiencing similar cash flow issues. All debt enforcement activity in respect of SMEs is
suspended until further notice.
•
Irish Revenue will warehouse unpaid VAT and payroll taxes arising from the Covid-19 crisis. These
tax debts will be parked for 12 months after a business resumes normal trading. A lower interest
rate of 3% (normally 10%) will apply on the repayment of such debts after this period. The
arrangements will ring-fence the debts for the period during which the business is unable to trade
or is trading at significantly reduced levels and includes a 2 month period after the business returns
to normal trading levels. No interest or debt enforcement will occur with respect to the
warehoused debts. This measure will require new legislation before it can take effect.
•
Revenue has suspended tax audit and other compliance intervention activity on taxpayers’
premises until further notice.
•
Revenue has indicated that it will continue to prioritise the approval and processing of tax
repayments and refunds to taxpayers.
Has any new
legislation been
introduced in light of
Covid-19?
Government measures in key jurisdictions
65