The Employment and Investment Incentive Scheme (EIIS) provides tax relief to private investors for risk capital investments in qualifying SMEs, to assist companies to raise finance to allow them to expand and create or retain jobs. A qualifying company can raise a lifetime maximum of €15 million risk finance using this incentive, which it may not otherwise be able to raise.
The sole function of the Minister for Enterprise, Trade and Employment in relation to EIIS funds is to ensure that the prospectus and publicity material for a fund give prospective investors the information required to make an objective decision when deciding to invest in a particular fund, in accordance with the provisions of the Designated Investment Funds Act 1985.
Section 5 of the Designated Investment Funds Act 1985 provides that no person can issue a prospectus or other notice of a scheme covered by the Act unless, at the time it is issued, the terms of the prospectus or notice is approved by the Minister for Enterprise, Trade and Employment. Section 5 (2) states that; “Where a prospectus, notice, brochure, circular or other document has been approved of by the Minister, a person shall not amend or otherwise alter its terms without the prior approval of the Minister of the amendment or other alteration”.
The Minister has no function in relation to fund managers and no right to relief for income tax shall arise by reason only of the Minister’s having given an approval under the Designated Investment Funds Act 1985.
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