Financial Resolution No. 6: Income Tax

Tuesday, 6 December 2011

Dáil Éireann Debate
Vol. 748 No. 6

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Minister for Education and Skills (Deputy Ruairí Quinn): Information on Ruairí Quinn  Zoom on Ruairí Quinn  I move:

[942]

In the budget for 2011 and the Finance Act 2011, changes were made to the business expansion scheme, BES, which introduced a new employment and investment incentive, EII, intended to boost job creation by SMEs. This measure could not be given effect until the European Commission gave approval under the Community guidelines on state aid to promote risk capital investments in small and medium-sized enterprises. Recently, the Commission granted that approval subject to certain further legislative amendments. This financial resolution amends section 33 of the Finance Act 2011 to provide for these legislative amendments and commences that section.

November and December traditionally are the peak months for raising BES investments. In view of the extended timeframe involved in securing the approval of the European Commission, I have decided to allow both the BES and EII schemes to run concurrently until the end of this calendar year, that is, until 31 December 2011. The BES scheme will end on 31 December 2011. The EII scheme is scheduled to run until 31 December 2013. The new commencement provisions will therefore provide for relief under the new EII scheme to apply in respect of shares issued on or after 25 November 2011 and second, where shares are issued between 25 November 2011 and 31 December 2011, an election to be made in writing to the Revenue Commissioners indicating under which scheme, BES or EII, the shares are issued. This election will determine the scheme under which relief to investors may be granted.

Deputy Sean Fleming: Information on Seán Fleming  Zoom on Seán Fleming  We welcome the pro-enterprise and pro-employment approach in this proposal and we will support it. We agree with the new employment and investment incentive scheme which came into operation on 25 November last and will continue until the end of 2013. Given that this proposal is only being voted through here tonight, will the Minister explain how the 25 November provision will be given retrospective effect?

An Ceann Comhairle: Information on Seán Barrett  Zoom on Seán Barrett  Would the Minister like to respond to that question?

[943]Deputy Ruairí Quinn: Information on Ruairí Quinn  Zoom on Ruairí Quinn  I am not exactly sure how we will do it but I will find that out in about three minutes.

An Ceann Comhairle: Information on Seán Barrett  Zoom on Seán Barrett  Do any other Members wish to contribute?

Deputy Ruairí Quinn: Information on Ruairí Quinn  Zoom on Ruairí Quinn  I am told that the Finance Bill provides for this facility to be legal and compliant with the Revenue Commissioners.

Deputy Sean Fleming: Information on Seán Fleming  Zoom on Seán Fleming  I thank the Minister for that.

Question put and agreed to.


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