Irish Finance Bill Extends Business Expansion Scheme

by Jason Gorringe, Tax-News.com, London

06 February 2007

Measures contained in Ireland's Finance Bill 2007 will provide real support to small and medium businesses, according to the Minister for Enterprise, Trade and Employment, Micheál Martin.

“The extension of the Business Expansion Scheme until 2013 and the decision to include recycling firms underlines the Government’s commitment to supporting small companies and entrepreneurs who are willing to take risks to provide jobs in local communities," observed Martin.

“I welcome the fact that Department of Finance Officials have engaged with the European Commission to get the necessary approval for the extension of the scheme. A formal application for approval will be made shortly," he added.

The BES and its associated Seed Capital Scheme (SCS), which is also being extended to 2013, are state aids, and the continuation of the schemes and the proposed changes require the approval of the European Commission. It is not certain when the EC will make its decision.

Martin continued:

“The measure is in line with the recommendations of the Small Business Forum which has considered the challenges facing the sector and how best they can be addressed.”

“The bill also includes measures which will cut red tape for small firms. There will be less frequent filing of tax returns, enhancement of the tax credit scheme for investment in Research and Development as well as revised preliminary tax payment arrangements for Corporation Tax.”

He concluded:

“These are concrete measures which will boost small and medium sized companies across the country. The Government is fully committed to continue supporting an enterprise economy, small businesses and the 800,000 people they employ."

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