As the deputy will be aware, Finance Act 2018 changed the way in which relief under the Employment Investment Incentive is claimed for share issues on or after 1 January 2019.
For share issues prior to 1 January 2019, companies had to receive Revenue certification for each share issue before the investors could claim relief. Prior to issuing shares, companies could apply for “outline approval”. Outline approval was Revenue expressing an opinion, based on the information provided, that a company was a qualifying company.
For share issues from 1 January 2019, the company must provide the investor with a “statement of qualification” confirming that it meets the conditions applicable to the company. The company may request Revenue’s opinion on whether or not it satisfies some of the more complex conditions, specifically those that emanate from European State Aid law. When an investor receives a “statement of qualification”, they must decide if they meet the conditions applicable to qualify for the relief themselves.
The scheme was redesigned to remove the administrative inefficiencies that were inbuilt, and ensure that compliant companies and investors could claim the relief on a more timely basis.
I am advised by Revenue that, in terms of whole-time equivalents, up to July 2018 there were 3.5 officers engaged in the EII processing unit. From July 2018 until December 2018 there were 7.5 officers, and from January 2019 there are 6.5 officers.