Brian Hayes (Dublin South West, Fine Gael)
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Question 172: To ask the Minister for Finance the steps have been taken since the publication of Building Ireland's Smart Economy - A Framework for Sustainable Economic Renewal 2009 to 2014 to realise tax measures in areas (details supplied); and if he will make a statement on the matter. [17603/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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The provisions of section 31 of the Finance (No 2) Act 2008 provide for relief from corporation tax for their first 3 years of operation for companies incorporated on and from 14 October 2008 that commence to carry on a new trade in 2009. The tax treatment of restricted and forfeitable shares was put on a statutory basis in Section 12 of Finance (No. 2) Act 2008.

As regards Section 31, the relief is granted by reducing the corporation tax on the profits of the new trade and on the gains from disposal of assets used for the purpose of the new trade to nil. Full relief is available where the corporation tax otherwise payable by the company in respect of any of its first 3 years is €40,000 or less. There is marginal relief where the corporation tax liability is between €40,000 and €60,000. The scheme of relief is currently being finalised in the context of seeking State-aid clearance from the EU Commission.