Clarification to the usage of cash reserves

“In relation to the usage of cash reserves in the context of eligibility under the Wages Subsidy Scheme, the Revenue Commissioners – as the ultimate arbiters of the scheme – have clarified the position in the attached guidance document. Specific attention is drawn to the text at the top of page 3 where it confirms that “An employer that has been hit by a significant decline in business but has  strong cash reserves that are not required to fund debt, will still qualify  for the Scheme but the Government would expect the employer to continue to pay a significant proportion of the employees’  wages”. Subsequent to the issue of that guidance document,  the Chairman of the Revenue Commissioners, Niall Cody, has publicly indicated that even if a company has cash reserves for debt or future expansions they can still qualify for the scheme. The Minister for Finance has also commented to the effect that those employers who have cash in reserve, and who have been hit by a decline in business, can also still qualify for the scheme”.

20200327 Revenue guidance-on-employer-eligibility-and-supporting-proofs