Dáil Éireann Debate, Tuesday - 23 June 2015
218. Deputy Seamus Kirk asked the Minister for Finance if the startup relief for entrepreneurship scheme will extend to primary food sector industries in the agriculture sector, including pig, poultry, dairy and beef farming; and if he will make a statement on the matter. [24985/15]
View answerThe legislation governing the operation of the Startup Refunds for Entrepreneurs (SURE) scheme, formerly known as the Seed Capital Scheme, is set out in Part 16 of the Taxes Consolidation Act 1997 (the Act). The scheme provides for a repayment of PAYE in certain circumstances to individuals who cease full time employment, or who are unemployed, and invest in the start up of a new company engaged in relevant trading activities.
"Relevant trading activities" are defined in section 488 of the Act as activities carried on in the course of a trade the profits or gains of which are charged to tax under Case I of Schedule D subject to certain exclusions, such as for example, professional services. Investment in a start-up company operating in the primary food sector industries in the agriculture sector, including pig, poultry, dairy and beef farming may currently qualify for SURE, subject to the company meeting the criteria provided for in sections 488 and 494 of the Act.
In this context the company must:
- be a "qualifying new venture". This means that as well as carrying on a qualifying trade it must be a new company i.e. less than two years old (from incorporation), and it must not have taken over an existing trade;
- be incorporated in the State or in another EEA State;
- be an unquoted company;
- be tax resident in the State or in another EEA State and carry on business in the State through a branch or agency;
- carry on relevant trading activities from a fixed place of business in the State;
- be a micro, small or medium-sized enterprise;
- have its issued share capital fully paid up. It should be noted that the share capital must remain fully paid up throughout the three years following investment i.e. all issued shares must be paid for in full; and
- use the amounts invested under the scheme for the creation and maintenance of employment and for the benefit of a qualifying new venture in the carrying on of its trading activities, or in the case of a company that has not commenced to carry on relevant trading activities, on research and development activities.
The company must not:
- have any special trading arrangements with the SURE investors' former employer company, or a company related to that former employer company. Normal business transactions are, however, acceptable, provided these are conducted on an arm's-length basis.
- carry on a trade which is similar to any other trade in respect of which the SURE investor has or has had a controlling interest.
- be considered as a firm in difficulty for the purposes of the Community Guidelines on State aid for rescuing and restructuring firms in difficulty.
- control or be controlled by any other company, with the exception of controlling a qualifying subsidiary.
Further details on the scheme are available on www.sure.gov.ie.
