Vol. 576 No. 6
147 Cecilia Keaveney asked the Minister for Finance the position in relation to an application of the seed capital scheme for a company (details supplied) in County Donegal; and if he will make a statement on the matter. [30416/03]
A company must be regarded as carrying on a qualifying trade for the purposes of the scheme to qualify under the seed capital scheme. The term "qualifying trade" is defined in the legislation governing the scheme. It includes a trade consisting of the manufacture of goods within the meaning of Part 14 of the Taxes Consolidation Act 1997. The relevant provision in part 14 is section 443(6)(a)(i), which states that goods which result from processes consisting principally of activities including cutting and packaging cannot be regarded as manufactured goods for the purposes of the Taxes Acts. I have been informed by the Revenue Commissioners that the company in question is engaged in an activity which is not regarded as the manufacture of goods within the meaning of the Taxes Acts and accordingly, it is not carrying on a qualifying trade for the purposes of the seed capital scheme. A range of issues regarding eligibility for the scheme have been raised with me. I will examine them in the context of the forthcoming finance Bill.
