Dara Calleary (Mayo, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

To ask the Minister for Finance the tax relief associated with revenue job assist; if this has changed since the budget; and if he will make a statement on the matter. [37383/12]

Michael Noonan (Limerick City, Fine Gael)
Link to this: Individually | In context | Oireachtas source

Sections 472A and 88A of the Taxes Consolidation Act 1997 provide tax incentives for both employers and employees, to help the long-term unemployed to return to employment. The relief under Section 472A, known as the Revenue Job Assist scheme, allows qualifying employees, in addition to their normal tax credits, to claim certain income deductions, including additional deductions for qualifying children, for the three year period after taking up employment. Section 88A provides an associated tax incentive for employers. Employers may claim a double deduction in computing the profits of the trade or profession in respect of the first 3 years’ wages paid to qualifying employees. This double deduction may also be claimed in respect of the employers’ PRSI contribution on such wages.

Both incentives apply in respect of individuals who have been unemployed for at least 12 months and are in receipt of a specified social protection payment or, who are in a category approved for the purposes of the scheme by the Minister for Social Protection with the consent of the Minister for Finance. The scheme was amended in Finance Act 2012 such that individuals signing on solely for credits with the Department of Social Protection can also qualify for the relief.

Dara Calleary (Mayo, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

To ask the Minister for Finance the maximum relief for the business expansion scheme; if this has changed since the budget; if the conditions have changed; and if he will make a statement on the matter. [37384/12]

Michael Noonan (Limerick City, Fine Gael)
Link to this: Individually | In context | Oireachtas source

Budget 2011 replaced the Business Expansion Scheme (BES) with the Employment and Investment Incentive (EII) subject to EU approval. That approval was received from the European Commission in November 2011. The new incentive is available in respect of investments made on or after 25 November 2011. EII (like BES) is a tax incentive that provides tax relief for investors who purchase new ordinary shares in small and medium companies carrying on a trade. The purpose of EII is to enable companies raise new capital to expand their activities. The scheme allows an individual investor to obtain income tax relief on investments up to a maximum of €150,000 per annum (unchanged from BES) in each tax year up to 2013. The main differences between EII and BES are as follows: The maximum amount that may be raised by a company in any 12 months has increased from €1.5m to €2.5m; The lifetime amount that may be raised by a company has increased from €2m to €10m; The period for which shares are required to be held has been reduced from 5 years to 3 years; The maximum rate of tax relief for subscriptions for eligible shares has been reduced from 41% to 30%, in recognition of the reduced holding period; A further 11% of tax relief may be available at the end of the holding period provided the company concerned has increased its number of employees or its expenditure on research and development.

Unlike BES, which was limited to companies carrying on a restricted number of trades, EII applies to companies carrying on all types of trades— with a small number of exclusions, including managing hotels/guest houses/nursing homes, financing activities and dealing in or developing land.