European Communities (Income Tax Relief For Investment in Corporate Trades - Business Expansion Scheme and Seed Capital Scheme) Regulations, 2004

JurisdictionIreland
CitationIR SI 757/2004
Year2004

STATUTORY INSTRUMENTS.

S.I. No. 757 of 2004 .


EUROPEAN COMMUNITIES (INCOME TAX RELIEF FOR INVESTMENT IN CORPORATE TRADES - BUSINESS EXPANSION SCHEME AND SEED CAPITAL SCHEME) REGULATIONS 2004.

S.I. No. 757 of 2004 .

EUROPEAN COMMUNITIES (INCOME TAX RELIEF FOR INVESTMENT IN CORPORATE TRADES — BUSINESS EXPANSION SCHEME AND SEED CAPITAL SCHEME) REGULATIONS 2004.

I, BRIAN COWEN, Minister for Finance, in exercise of the powers conferred on me by section 3 of the European Communities Act 1972 (No. 27 of 1972) and for the purpose of giving effect to the provisions relating to aids granted by States as provided for by Articles 87, 88 and 89 of the Treaty establishing the European Community and to Commission Decision C(2004)3617 of 20 October 2004, in respect of the Business Expansion Scheme and the Seed Capital Scheme, hereby make the following regulations:

Citation and operative period.

1. (1) These Regulations may be cited as the European Communities (Income Tax Relief for Investment in Corporate Trades — Business Expansion Scheme and Seed Capital Scheme) Regulations 2004.

(2) These Regulations remain in force until the passing of a money bill in 2005 containing provisions giving effect to Commission Decision C(2004)3617 of 20 October 2004.

Construing of section 18 Finance Act 2004.

2. During the period to which Regulation 1(2) of these Regulations relates, section 18 of the Finance Act 2004 ( No. 8 of 2004 ) has effect as if —

(a) in subsection (2) —

(i) there were substituted the following for paragraph (b):

“(b) in section 491 —

(i) in subsections (2)(a) and (3)(a), by substituting ‘€1,000,000’ for ‘€750,000’,

and

(ii) by inserting the following after subsection (3):

‘(3A) Notwithstanding anything in subsections (2) and (3), relief shall not be given in respect of a relevant issue to the extent that —

(a) the amount raised by the relevant issue, or

(b) the aggregate of —

(i) the amount to be raised through the relevant issue, and

(ii) the amount or amounts, if any, raised through the issue of eligible shares, within the period of 6 months ending with the date of that relevant issue, by the company or by all of the companies (including the company making the relevant issue) which are associated within the meaning of this section, as the case may be, exceeds €750,000.’ ”,

(ii) there were inserted the following after paragraph (c):

“(cc) in section 495 —

(i) by substituting the following for subsections (1) and (2):

‘(1) In this section —

“EEA Agreement” means the Agreement on the European Economic Area signed at Oporto on 2 May 1992, as adjusted by the Protocol signed at Brussels on 17 March 1993;

“EEA State” means a state which is a contracting party to the EEA Agreement;

“qualifying subsidiary”, in relation to a company, means a subsidiary of that company of a kind which a company may have by virtue of section 507.

(2) A company shall be a qualifying company if it is incorporated in the State or in an EEA State other than the State and complies with this section.’,

(ii) in subsection (3)(a), by substituting ‘which is resident in the State, or is resident in an EEA State other than the State and carries on business in the State through a branch or agency,’ for ‘which is resident in the State and not resident elsewhere,’,

(iii) by inserting the following after subsection (3):

‘(3A) The company shall —

(a) as respects the period 5 February 2004 to 31 December 2004 be a small or medium-sized enterprise within the meaning of Annex 1 to Commission...

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