Thousands of workers face tax bill 'up to €1,400' for Covid wage subsidies

Sinn Féin's Finance Spokesperson, Pearse Doherty says clawing back some of the taxes is unfair. Picture: Gareth Chaney/Collins

It is expected thousands of workers who were put on wage subsidies last year will be told next week of any taxes due.

Employees who were on the Temporary Wage Subsidy Scheme and the Pandemic Unemployment Payment must settle outstanding Revenue bills, which could amount to more than €1,000.

The taxes are due as the Government rushed through the introduction of the subsidies, in response to the pandemic, without allowing for them to be taxed at source.

Sinn Féin's Finance Spokesperson, Pearse Doherty says clawing back some of the taxes is unfair.

"The pandemic unemployment payment, under-law, was tax-exempt. There's no ifs, buts, or maybes, it was tax-exempt", he said.

"What the Government did, was that they rewound the clock.

"They did something that was never done before in the history of tax legislation and that is they retrospectively taxed it, which means that certain people will be getting bills or will have liabilities of anything up to €1,400."