Finance Act 2008

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Chapter 3

Income Tax, Corporation Tax and Capital Gains Tax

Amendment of Part 16 (income tax relief for investment in corporate trades — business expansion scheme and seed capital scheme) of Principal Act.

24.— (1) Part 16 of the Principal Act is amended—

(a) in section 495—

(i) by inserting in subsection (1) the following before the definition of “EEA Agreement”:

“ ‘assisted area’ means an area specified in the National Regional State Aid Map for Ireland in relation to the period 1 January 2007 to 31 December 2013 approved under Commission Decision No. N 374/2006 of 24 October 2006;”,

and

(ii) by inserting the following after subsection (3A) (inserted by the Finance Act 2004 ):

“(3B) The company shall as respects the period commencing on 1 January 2007—

(a) be a micro or small enterprise within the meaning of Annex 1 to Commission Regulation (EC) No. 364/2004 of 25 February 2004,

(b) be a medium-sized enterprise within the meaning of Annex 1 to Commission Regulation (EC) No. 364/2004 of 25 February 2004 located in an assisted area, or

(c) where it is not located in an assisted area, be a medium-sized enterprise within the meaning of Annex 1 to Commission Regulation (EC) No. 364/2004 of 25 February 2004 which is at a stage of development not beyond start-up stage within the meaning of the Community Guidelines on State Aid to Promote Risk Capital Investments in Small and Medium-Sized Enterprises.

(3C) For the purposes of subsection (3B), the location of a company shall be determined by reference to the location at which the company or, as the case may be, the qualifying subsidiary, carries on qualifying trading operations or, in the case of a company which is resident in an EEA State other than the State that carries on business in the State through a branch or agency, the location at which that branch or agency carries on qualifying trading operations.”,

(b) in section 496(9A) (inserted by the Finance Act 2007 ), by substituting the following for paragraph (a):

“(a) For the purposes of subsection (2)(a)(xvi) ‘ recycling activities in relation to waste material ’ means—

(i) the subjection of the waste material to any process or treatment which results in value-added material that is reusable, and

(ii) in respect of which activities, the qualifying company—

(I) has obtained approval of a grant or financial assistance from an industrial development agency or a County Enterprise Board (being a board referred to in the Schedule to the Industrial Development Act 1995 ), or

(II) has been provided with written confirmation from an industrial development agency or a County Enterprise Board (being a board referred to in the Schedule to the Industrial Development Act 1995 ) that the qualifying company has submitted a business proposal to the agency or board, as the case may be, and that, in the opinion of that agency or board, as the case may be, the activities described in the business proposal, come within the scope of a service industry specified in the Schedule to the Industrial Development (Services Industries) Order 2003 ( S.I. No. 458 of 2003 ).”,

(c) in section 497—

(i) in subsection (4)—

(I) by deleting “or” in paragraph (b) and inserting “or” after “section 496(2)(a)(xii),” in paragraph (c), and

(II) by inserting the following after paragraph (c):

“(d) an industrial development agency or a County Enterprise Board (being a board referred to in the Schedule to the Industrial Development Act 1995 ) in respect of qualifying trading operations referred to in section 496(2)(a)(xvi),”

and

(ii) in subsection (7)(a) by substituting “subparagraphs (i), (ii), (v) and (xvi) of section 496(2)(a),” for “subparagraphs (i), (ii), and (v) of section 496(2)(a),”,

and

(d) in section 508A (inserted by the Finance Act 2007 ) by inserting the following after subsection (3):

“(3A) No obligation as to secrecy imposed by statute or otherwise shall preclude the Revenue Commissioners from publishing information obtained by them in accordance with subsection (1).”.

(2) Subsection (1) applies as follows:

(a) as respects paragraphs (a) and (d), as on and from 1 January 2007, and

(b) as respects paragraphs (b) and (c), as on and from 1 January 2008.

(3) The European Communities (Income Tax Relief for Investment in Corporate Trades — Business Expansion Scheme and Seed Capital Scheme) Regulations 2007 ( S.I. No. 613 of 2007 ) are revoked.