CCAB-I submission to latest EII consultation
Chartered Accountants Ireland, under the auspices of the CCAB-I, contributed to the latest public consultation on the Employment 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 GERB 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 Source Material section of this edition for CCAB-I’s submission.