CCAB-I submission to latest EII consultation

Feb 15, 2021

Chartered Accountants Ireland, under the auspices of the CCAB-I, contributed to the latest public consultation on the Enterprise Investment Incentive Scheme (EIIS).  The CCAB-I highlights that restrictions at EU level, and consequently under Irish law, have reduced the effectiveness of the scheme to attract investors to support start-up businesses and SMEs in expansion cycles.  The tax value of EIIS claims has reduced from €31 million in 2016 to €14.5 million in 2018. 

The CCAB-I calls for the risks associated with self-certification to be offset by removing CGT loss relief restrictions.  Further measures are warranted in response to the additional layer of risk due to COVID-19, summarised as follows:

  • Increase tax relief to investors in recognition of the higher risk of making an investment in the uncertain pandemic environment.
  • The seven-year rule for RICT Groups under GBER could also be relaxed.
  • Founders (and/or connected parties) could be given tax relief to encourage investment by them or their connected parties in the SME.
  • The pre-condition of Fáilte Ireland approval should be relaxed to make it easier for businesses in the sector to apply for the scheme.
  • The EII should be expanded to allow for investment in businesses selling knowledge and expertise such as recruitment businesses, management consultancy businesses, marketing, and PR businesses.

See the CCAB-I’s submission for full details.