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Employment and Investment Incentive Ex-Ante Economic Impact Analysis Department of Finance edge 2011 1. Background 1.1The Business Expansion Scheme (BES) was introduced in 1984 to incentivise private investing in long-term equity capital in companies. 1.2The proposal assists in the creation and retention of jobs in certain wee and medium-sized enterprises (SME) located in Ireland, through the provision of capital investment, which companies would other than find difficult to raise. 1.3The connive was brushuped in 2006 and subsequently all-encompassing until 2013. The reasons for this extension included; the clear market failure in providing equity capital for small firms in their start-up and early teaching phases, the evidence of how vital the scheme has been in the past for such firms and continuing needs in this regard, and the potential return to the frugality from indigenous Irish companies. 1.4Under the current BES, individuals that purchase unremarkable share capital of qualifying companies can get task relief at the marginal rate on the regard as of their investment provided that they hold the shares for a minimum of five years. The maximal investment (per investor) that can be tax relieved is €150,000 per annum.

However, as the scheme is one of the specified reliefs for the purposes of the high earners restriction, the changes introduced in Budget 2010 to that restriction, means that this maximum investment doorsill could not be fully tax relieved in a single tax year. The maximum lifetime entrap that a company can raise under the scheme is €2 million. 2. Impact of the Economic Downturn 2.1SMEs are the wellspring of usage and innovation in this economy. Given that job creation and bulwark is a top priority of the Government, it is essential that the BES is targeted and evaluated against jobs created or retained. With the coming of the economic downturn, it was decided to bring forward the planned review of... If you want to get a full essay, order it on our website: Ordercustompaper.com

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