A report from Forfás which reviews equity investment in Ireland makes a number of recommendations on tax policy including that the investors in EIIS (Employment and Investment Incentive scheme) should not be subject to the High Income Earner restriction. The report also recommends expanding the EU guidelines on what companies can qualify for EIIS investment and the adoption of positive features of the UK equivalent to EIIS.

The report acknowledges the collaboration between the Irish Banking Federation and CCAB-I initiative “Business Plan Guidance” which is designed to facilitate the use of a common approach, framework and language in the preparation of business plans and raising of bank finance.

The report suggests the reduction of tax on dividends to match the rate applying to deposit interest and the introduction of tax policy to encourage equity financing rather than debt financing.

A number of recommendations are also made pertaining to carried interest tax legislation which includes expanding the scope of the relief to include pre start-up investments, linking the relief to the overall performance of the venture capital portfolio and relaxing the holding period of six years to a shorted time frame.