Written answers
Thursday, 5 February 2015
Department of Finance
Tax Exemptions
Michael McGrath (Cork South Central, Fianna Fail)
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135. To ask the Minister for Finance the tax expenditure, the number of participants and jobs supported under the employment and investment incentive and seed capital scheme in 2013 and 2014; and if he will make a statement on the matter. [5380/15]
Michael Noonan (Limerick City, Fine Gael)
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I am informed by the Revenue Commissioners that the relevant information in relation to the Employment and Investment Incentive (EII) for the years in question is as set out in the following table.
| Year | Estimated Cost | Number of Investors | Number of Companies |
|---|---|---|---|
| 2013 | €12.3 million | 1,006 (including 6 EII funds) | 185 |
| 2014* | €15.1 million | 1,132 (including 4 EII funds) | 179 |
Data in relation to the number of jobs supported should become available at a later stage. Under the terms of the scheme in force in the years shown above, relief in respect of 30% of the amount invested in a qualifying company is granted to the investor in the year of investment, while the balance is only due where it has been proven that employment levels have increased at the company at the end of the holding period (3 years) or where evidence is provided that the company used the capital raised for expenditure on research and development. Claims for the balance of the relief will be due from 2015.
The tax expenditure on the Seed Capital Scheme in 2013, the latest year available, was €1.1 million. There were 57 investors and 51 companies associated with these investments. Figures for 2014 will be available in due course.
Michael McGrath (Cork South Central, Fianna Fail)
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136. To ask the Minister for Finance the tax expenditure, the number of participants and the number of jobs supported by the special assignee relief programme in 2013 and 2014; and if he will make a statement on the matter. [5381/15]
Michael Noonan (Limerick City, Fine Gael)
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I am informed by the Revenue Commissioners that they will shortly finalise a report, for presentation to me, in relation to the Special Assignee Relief Programme for 2012 and 2013, which I intend to publish in due course. The report, once completed, will contain the information requested by the Deputy and I will draw his attention to it when available.
I am also informed by the Revenue Commissioners that a similar report will be prepared in relation to 2014. However, as the tax returns for those who availed of the relief in 2014 are not due for submission to Revenue until later this year, the 2014 report will not be finalised until early 2016 at the earliest.
Michael McGrath (Cork South Central, Fianna Fail)
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137. To ask the Minister for Finance the tax expenditure, the number of participants and the number of jobs supported under the foreign earnings deduction scheme in 2013 and 2014; and if he will make a statement on the matter. [5382/15]
Michael Noonan (Limerick City, Fine Gael)
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The full year estimated cost to the Exchequer of the Foreign Earnings Deduction (FED) for the 2013 tax year, the latest year for which complete statistics are available, was €0.8 million. 106 employees claimed the deduction for that tax year. Complete information in relation to 2014 tax year returns is not yet available, as the Form 11 tax returns for 2014 are not due to be filed until later this year.
There is no reporting requirement in relation to the number of jobs supported by the incentive. However, the Deputy will be aware that it was introduced to encourage the development of trade and exports to non-traditional markets for Irish goods and services. The conditions surronding qualification for the deduction were significantly enhanced in the recent Finance Bill, following a review of the FED, which was carried out last year. The report of that review was published on Budget day and is available at .
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