Dáil Éireann Debate, Tuesday - 8 April 2014
128. Deputy Michael McGrath asked the Minister for Finance the tax expenditure, the number of participants and jobs supported under the employment and investment incentive and seed capital scheme in each year since its inception; and if he will make a statement on the matter. [16419/14]
View answerThe tax cost of the Employment and Investment Incentive (EII) Scheme is estimated to be €4 million in 2012 and €12.4 million in 2013. The associated number of investors is 352 (including 2 EII funds) and 1,011 (including 6 EII funds) respectively for 2012 and 2013. These figures are revisions of earlier estimates provided, based on the most recently available information.
Data in relation to the number of jobs supported should become available at a later stage. Under the terms of the scheme, relief in respect of 30% of the amount invested in a qualifying company is granted to the investor in the year of investment, while the balance is only due where it has been proven that employment levels have increased at the company at the end of the holding period (3 years) or where evidence is provided that the company used the capital raised for expenditure on research and development. Claims for the balance of the relief will be due from 2015.
Prior to the EII Scheme, the Business Expansion Scheme (BES) was in operation. The estimated Exchequer cost of the BES and the numbers of investors since 2003 is set out in the following table.
|
Year |
Cost €m |
Number of Investors |
|
2003 |
39.6 |
2,046 |
|
2004 |
50.1 |
2,599 |
|
2005 |
38.2 |
1,642 |
|
2006 |
50.9 |
1,994 |
|
2007 |
42 |
1,913 |
|
2008 |
135.7 |
3,200 |
|
2009 |
62.3 |
1,642 |
|
2010 |
58.3 |
1,467 |
|
2011 |
41 |
927 |
|
2012 |
31.5 |
984 |
The tax cost and number of participants in the Seed Capital Scheme from 2003-2013 is as set out in the following table. It is not possible to provide both of these figures for all years since the inception of the scheme without a more detailed review of the Revenue Commissioners records.
|
Year |
Number of Companies |
Estimated Cost of Tax Relief - €m |
|
2003 |
60 |
2.3 |
|
2004 |
74 |
2.6 |
|
2005 |
42 |
1.3 |
|
2006 |
42 |
1.2 |
|
2007 |
63 |
2.3 |
|
2008 |
56 |
1.6 |
|
2009 |
78 |
2.9 |
|
2010 |
54 |
1.8 |
|
2011 |
65 |
2.0 |
|
2012 |
67 |
1.6 |
|
2013* |
65 |
1.3 |
*Provisional
