Finance Act 2007
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Chapter 3 Income Tax, Corporation Tax and Capital Gains Tax | ||
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Amendment of Part 16 (income tax relief for investment in corporate trades — business expansion scheme and seed capital scheme) of Principal Act. |
19.— (1) Part 16 of the Principal Act is amended— | |
(a) in section 488(1)— | ||
(i) in paragraph (d) of the definition of “relevant period” by substituting “one year” for “2 years” in both places where it occurs, and | ||
(ii) in the definition of “unquoted company” by substituting “Irish Enterprise Exchange” for “Developing Companies Market” in each place where it occurs, | ||
(b) in section 489— | ||
(i) by inserting the following after subsection (4B)(inserted by the Finance Act 2004 ): | ||
“(4C) Notwithstanding any other provision of this section, where— | ||
(a) (i) in accordance with section 508 relief is due in respect of an amount subscribed as nominee for a qualifying individual by the managers of a designated fund, | ||
(ii) the amount so subscribed was subscribed to the designated fund in the period beginning on 1 January 2007 and ending on 31 January 2007, and | ||
(iii) the eligible shares in respect of which the amount is subscribed by the managers of the designated fund are issued on or before 31 December 2007, | ||
or | ||
(b) eligible shares are issued by a qualifying company to a qualifying individual in the period beginning on 1 January 2007 and ending on 31 January 2007, | ||
then the qualifying individual may elect, by notice in writing to the inspector, to have the relief due given as a deduction from his or her total income for the year of assessment 2006 instead of (as provided for in subsection (3)) as a deduction from his or her total income for the year of assessment 2007 and, where an election is so made, the relief to be given for the year of assessment 2006 shall be in accordance with section 490(2) as it applied for that year.”, | ||
and | ||
(ii) in subsection (15) by substituting “31 December 2013” for “31 December 2006”, | ||
(c) in section 490— | ||
(i) in subsection (2) by substituting “€100,000 in the case of a relevant investment, or €150,000 in any other case” for “€31,750”, | ||
(ii) in subsection (3)(a) by substituting “, (4B) or (4C)” for “or (4B)”, and | ||
(iii) in subsections (3)(b) and (4)(b) by substituting “2013” for “2006”, | ||
(d) in section 491— | ||
(i) in subsections (2)(a) and (3)(a)— | ||
(I) by substituting “1 January 2007” for “1 January 2002”, and | ||
(II) by substituting the following for the definition of “A” in the formula: | ||
“A is €2,000,000,”, | ||
(ii) by deleting subsections (2)(b) and (3)(b), and | ||
(iii) in subsection (3A)— | ||
(I) by substituting “12 months” for “6 months”, and | ||
(II) by substituting “€1,500,000” for “€750,000”, | ||
(e) in section 493 in subsection (8)(a)(i) by substituting “€500,000” for “€317,500”, | ||
(f) in section 496— | ||
(i) in subsection (2)(a)— | ||
(I) in subparagraph (ii)(I) by substituting the following for subclause (A): | ||
“(A) the making of a grant towards the employment of persons under section 25 of the Industrial Development Act 1986 (as amended by section 29 of the Industrial Development (Science Foundation Ireland) Act 2003 ), was approved by Forbairt or the Industrial Development Agency (Ireland), or”, | ||
(II) by substituting the following for subparagraph (v): | ||
“(v) in respect of a relevant investment, the rendering of services referred to in subparagraph (ii) in respect of which an industrial development agency or a County Enterprise Board (being a board referred to in the Schedule to the Industrial Development Act 1995 ) has provided a certificate confirming eligibility for the grant of financial support of not less than €2,540 towards the undertaking of a feasibility study by a person approved of by the agency or the County Enterprise Board into the potential commercial viability of the services to be rendered,”, | ||
(III) by deleting “and” at the end of subparagraph (xiii) and inserting “and” at the end of subparagraph (xv), and | ||
(IV) by inserting the following after subparagraph (xv): | ||
“(xvi) recycling activities in relation to waste material, within the meaning of subsection (9A).”, | ||
and deleting “and” where it last occurs in paragraph (a), | ||
and | ||
(ii) after subsection (9) by inserting the following: | ||
“(9A) (a) For the purposes of subsection (2)(a)(xvi) ‘recycling activities in relation to waste material’ means the subjection of the waste material to any process or treatment which results in value-added material that is reusable and, in respect of which activities, a grant or financial assistance has been made available by an industrial development agency. | ||
(b) For the purposes of paragraph (a) ‘waste material’ means any of the following: | ||
(i) packaging; | ||
(ii) construction and demolition waste; | ||
(iii) metals, wood, glass and plastics; | ||
(iv) electrical and electronic equipment; | ||
(v) batteries; | ||
(vi) end of life mechanically propelled vehicles.”, | ||
and | ||
(g) by inserting the following after section 508: | ||
“Reporting of relief. | ||
508A.— (1) A person (being a qualifying company or the managers of a designated fund) shall, when required to do so by notice in writing by the Revenue Commissioners, furnish the Revenue Commissioners within such time as may be specified in the notice (not being less than 30 days) with such information, in relation to the relief provided for in this Part, as the Revenue Commissioners may reasonably require from that person for the purpose of the annual reports required in accordance with section 7.1 of the Community Guidelines on State Aid to Promote Risk Capital Investments in Small and Medium-Sized Enterprises 2 . | ||
(2) Notwithstanding any obligation as to secrecy imposed on them by the Tax Acts or the Official Secrets Act 1963 , the Revenue Commissioners may furnish the information obtained in accordance with subsection (1) to the person submitting the annual reports referred to in that subsection. | ||
(3) The Revenue Commissioners may nominate any of their officers to discharge any function authorised by this section to be discharged by the Revenue Commissioners. | ||
(4) Where any person fails to comply with a requirement to furnish the information in accordance with subsection (1), that person shall be liable to a penalty of €2,000 and, if that failure continues after the period of 30 days referred to in that subsection, a further penalty of €50 for each day on which the failure so continues.”. | ||
(2) (a) Subject to paragraph (b), subsection (1) applies as follows: | ||
(i) as respects paragraphs (a)(i) and (f)(i)(II), in relation to relevant investments made on or after 1 January 2007; | ||
(ii) as respects paragraph (a)(ii), as on and from 12 April 2005; | ||
(iii) as respects paragraphs (b), (c)(ii), (c)(iii), (d)(ii), (f)(i)(III), (f)(ii) and (g), as on and from 1 January 2007; | ||
(iv) as respects paragraphs (c)(i), (d)(i), (d)(iii), (e) and (f)(i)(IV), in relation to eligible shares issued on or after 1 January 2007; and | ||
(v) as respects paragraph (f)(i)(I), as respects subscriptions for eligible shares issued on or after 1 January 2007. | ||
(b) Subsection (1) comes into operation on the making of an order to that effect by the Minister for Finance. | ||