Thursday, 30 May 2019

Ceisteanna (60)

Michael McGrath

Ceist:

60. Deputy Michael McGrath asked the Minister for Finance the annual cost of the employment and investment incentive scheme for each year since it commenced; the number of companies that availed of the scheme in each of these years by multinational and SME companies; and if he will make a statement on the matter. [23151/19]

Amharc ar fhreagra

Freagraí scríofa (Ceist ar Finance)

The Employment and Investment Incentive (“EII”) is an incentive whereby investors can claim relief for investments in qualifying companies.

The annual cost and number of companies that have availed of the scheme between 2012 and 2017, the latest year for which data are currently available, can be found in the following table.

Year

No. of qualifying companies

Estimated Tax Cost (First tranche) €M

Estimated Tax Cost (Second tranche) €M

2011/2012

255

15.7

3.2

2013

248

17.3

2.9

2014

297

23.3

2.0

2015

270

28

2016

203

31

2017

87

18.6

I am advised by Revenue that while applicant companies for EII must be micro, small or medium sized enterprises they are not required by Revenue to identify whether they have a multi-national character. Accordingly, the breakdown the Deputy has asked for in relation to multi-national companies is not available.

As the Deputy is aware, in 2018 I commissioned a review of the Employment and Investment Incentive. An initial response to the review was provided for in Finance Act 2018, which brought forward a priority package of measures to address certain issues with the incentive and to increase its efficiency and effectiveness. This included the extension of the scheme to 31 December 2021.

It was always the intention that other measures identified in the review would be examined in due course, with the potential for further amendments in future Finance Bills. To assist with consideration of these proposals, a consultation process is underway on tax incentives that are intended to support SMEs, which includes a focused consultation on the Employment and Investment incentive.

As part of the process, a Stakeholder Consultation Event is scheduled to be held next week (Thursday, 6 June 2019). Relevant details will be made available on my Department's website later this week. The intention is to ensure that the incentive operates in an efficient and effective manner, as a targeted SME support measure.