Revenue Precedents

Whether relief should be allowed for part shares if and when bonus share issue takes place that will eliminate any part shares being held by investors? Relief allowed as the bonus issue would ensure that each investor would be registered as the owner of full shares. 2476/87

When did shares actually issue? Would Revenue accept that the share “issued” when a mutual obligation arose whereby the applicant was obliged to take the shares and the company was obliged to cause those shares to be registered in the applicants name? The issue of shares occurred when the legal title was completed by way of registration. BES and share capital relief can be claimed only when the applicants have been issued with the relevant share certificates. 2014/93

Would the existence of a Patent Royalty Company which resulted in a return of patent income to the BES investor, offend this section? No, if the patent company is engaged in licensing arrangements with the manufacturing company and if distributable reserves are eliminated prior to BES investment. 5891/90

Whether a promise to investors of an asset in lieu of investment after the five year relevant investment period contravenes section 489(14)? Section 489(14) was contravened. 76/92

(1) Whether promoters be allowed by way of agreement with fund, to withhold some of their money until it was required by the company, and they would then subscribe for the agreed number of shares, & (2) Would an agreed investment by promoters (which is required by a designated fund) offend the risk provisions? (1) Agreed this would not eliminate risk. (2) No. It just demonstrates the commitment of the promoters to the project. 6313/95

Would an individual working 37 hours with the seed capital company and 37 hours with another company satisfy the requirement that full time employment must be taken up in the seed capital company? No 6308/96

BES money can be used to repay bank borrowings which are financing a company's trade. 3584/87A

BES relief does not apply where assets are used for the payment of shares. The shares must be issued for the purpose of raising money for the qualifying trade. 944