Jim Higgins
Ceist:198 Mr. Higgins (Mayo) asked the Minister for Finance the conditions which attach to the development of tourist accommodation under the business expansion scheme. [5855/01]
Written Answers. - Business Expansion Scheme.
The business expansion scheme provides individual investors with tax relief in respect of investment in companies carrying out certain activities, including tourism activities. A company can raise up to a maximum of £250,000 under the scheme while the maximum amount on which an individual can claim tax relief in any one tax year is £25,000. There are certain general conditions which all investors and companies must comply with to qualify for tax relief under the scheme. There are other conditions which are specific to the trading activity of the company.
In the case of tourism, a company must be engaged in a tourist activity as defined in the BES legislation, that is, the company must be engaged in: (a) the operation of tourist accommodation facilities for which Bord Fáilte Éireann maintains a register in accordance with the Tourist Traffic Acts, 1939 to 1995, other than hotels, guest houses and self-catering accommodation, (b) the operation of such other classes of facilities as may be approved of for the purposes of the relief by the Minister for Finance, in consultation with the Minister for Tourism, Sport and Recreation, on the recommendation of Bord Fáilte Éireann in accordance with specific codes of standards laid down by it, or (c) the promotion outside the State of – (i) one or more tourist accommodation facilities for which Bord Fáilte Éireann maintains a register in accordance with the Tourist Traffic Acts, 1939 to 1995, or (ii) any of the facilities mentioned in paragraph (b). The company must submit and have approved by Bord Fáilte Éireann a three year development and marketing plan in order to qualify under the scheme. When Bord Fáilte has approved the plan, it issues the company with a certificate together with any other relevant details, including a list of the investors, to the Revenue Commissioners for processing.