Dáil Éireann Debate, Tuesday - 24 July 2018
282. Deputy Michael McGrath asked the Minister for Finance the annual cost of the start-up refunds for entrepreneurs for the previous five years including 2017; the number of companies that have availed of the scheme in each of these years; and if he will make a statement on the matter. [33928/18]
Amharc ar fhreagraStart Up Refunds for Entrepreneurs (SURE) provides a refund of tax paid in the previous six tax years to those previously in PAYE employment, or recently unemployed, where they invest funds into a new business set up by them.
The most recent year for which statistics are available on this incentive is 2015. The cost and number of individuals who have availed of SURE for each year from 2012 to 2015 inclusive are as follows:
|
Year |
Cost €m |
Claimants |
|
2015 |
1.8 |
86 |
|
2014 |
1.8 |
59 |
|
2013 |
1.3 |
60 |
|
2012 |
1.6 |
88 |
As the Deputy may be aware, I have commissioned a review of the Employment and Investment Incentive (EII) and SURE. That review is underway and I expect that the report will be completed very shortly.
The scope of the review is as follows:
- An examination of the extent to which the objectives of the incentives remain valid.
- An examination of the extent to which objectives of the incentives are being met.
- An examination of the cost effectiveness of the incentives.
- An examination of alternative options which may exist for the provision of state support.
- An examination of the effect of GBER (the General Block Exemption Regulations) on the incentives.
- A comparison of the incentives with similar incentives in operation in other EU Member States in terms of design, objectives, criteria, take-up, impact and cost-effectiveness.
- An examination of whether the incentives, as currently designed, provide a platform for the effective operation of the reliefs.
The review of the design of the incentives should include:
- Possible alternative approaches to giving relief based on the current certification procedure;
- Current investment thresholds and carry-forward rules;
- Amount of relief and triggers for relief;
- The appropriateness and adequacy of the risk minimisation requirements;
- The imbalance of knowledge/control between companies and investors;
- The rules relating to designated funds;
- The interaction of the incentive with other aspects of the tax code;
- The interaction of the incentive with other State supports for SMEs e.g. the R&D/'innovation' requirements; and
- The structure and text of the legislative provisions including definitions of terms.
- Conclusions and Recommendations arising from the analysis.
