Dáil Éireann Debate, Wednesday - 25 September 2013
70. Deputy Denis Naughten asked the Minister for Finance when proposals were submitted to the EU Commission for approval of section 22 of the Finance Act 2013; the reason for the delay in obtaining approval; when it is envisaged that approval will be obtained; and if he will make a statement on the matter. [39907/13]
View answerThe Employment and Investment Incentive (EII) is a tax incentive which provides income tax relief for investment in certain corporate trades. Relief is initially available to an individual at 30%, with a further 11% tax relief available where it has been proven that employment levels have increased at the company at the end of the holding period. The EII commenced on 25 November 2011. Prior to this the Business Expansion Scheme (BES) was in operation. As part of Budget 2013 I announced a 10 point tax reform plan to help small business. One of the measures in this plan was the extension of the EII from its current expiration date of the end of 2013 to the end of 2020 in order to provide certainty to investors and companies. As the EII is a state aid scheme, the approval of the European Commission is required. Accordingly, an application was made to the European Commission in June to extend the EII until 2020.
Officials continue to engage with the Commission in relation to the application. However, at this stage, it is not possible to indicate when the approval of the European Commission will be forthcoming. I have been assured that the extension will be implemented, as soon as possible, once approval has been received. In addition to the extension of the scheme, I also announced the inclusion of hotels, guest houses and self-catering accommodation in the EII, subject to certain conditions. This amendment did not require the approval of the European Commission and is currently available to qualifying businesses.
