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Employment and Investment Incentive (EII)

  • 08-10-2015 3:16pm
    #1
    Registered Users Posts: 10,928 ✭✭✭✭ phantom_lord


    Hi,

    Where do I go looking for available EII schemes?
    Does anyone have any recommendations?


Comments

  • Registered Users Posts: 288 ✭✭ PhiliousPhogg


    BDO have been doing them for years and are probably have the biggest funds, as far as I'm aware. http://www.bdo.ie/services/eii-scheme-funds

    There is also a smaller fund focused in the renewables area called BVP - www.bvp.ie

    I couldn't vouch for either just to say that they are an attractive investment if you're on the higher income tax rate, as you're probably aware. I intend on making an investment myself when the time is right.


  • Closed Accounts Posts: 2,379 ✭✭✭ newacc2015


    Hi,

    Where do I go looking for available EII schemes?
    Does anyone have any recommendations?

    I think these are only really to help you reduce your tax bill, rather than make money. It good way to reduce your tax bill, if you are hitting the top rate of taxation


  • Registered Users Posts: 10,928 ✭✭✭✭ phantom_lord


    that's my main objective alright!


  • Registered Users Posts: 288 ✭✭ PhiliousPhogg


    This in the Times today:
    http://www.irishtimes.com/business/agribusiness-and-food/carlow-craft-brewery-to-entice-investors-through-tax-scheme-1.2396532
    Carlow Craft Brewery, the company behind the O’Hara’s range of craft beers, is looking to tap wealthy clients of Dublin stockbroking firms to raise up to €2.5 million for a new brewhouse under a tax-efficient business expansion scheme.
    The firm, which was founded almost two decades ago and also trades as the Carlow Brewing Company, is looking to raise funds under the State’s employment and investment incentive scheme.
    ...
    The company made profits of about €600,000 in the year to the end of March 2014, according to its most recently filed set of abridged accounts.

    €0.6m profits already and expanding. Ireland's biggest craft brewer, well managed business. Would say you'd be looking at a nice return after the 3 year period. [Edit: although I'm pretty sure they'd lose the Excise rebate/exemption for microbreweries by expanding]


  • Registered Users Posts: 10,928 ✭✭✭✭ phantom_lord


    I received the prospectus for that deal. The fees are criminal, and the returns are a joke. Basically you're putting your money at risk for 4years just to get the relief alone.


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  • Closed Accounts Posts: 2,379 ✭✭✭ newacc2015


    I received the prospectus for that deal. The fees are criminal, and the returns are a joke. Basically you're putting your money at risk for 4years just to get the relief alone.

    IMO its a pretty risk free investment. I imagine there is a good recovery rate in the Business ie the business fails you can sell off the assets to get most of your investment back. I get the impressive most of the investments in EII are just for the tax relief and not to get a return


  • Registered Users Posts: 10,928 ✭✭✭✭ phantom_lord


    Did anyone invest in O’Hara’s? How's it going? They used the money to expand aggressively anyway.

    Anyone looking at any schemes for this year?


  • Registered Users Posts: 13,483 ✭✭✭✭ CIARAN_BOYLE


    BDO have been doing them for years and are probably have the biggest funds, as far as I'm aware. http://www.bdo.ie/services/eii-scheme-funds

    There is also a smaller fund focused in the renewables area called BVP - www.bvp.ie

    I couldn't vouch for either just to say that they are an attractive investment if you're on the higher income tax rate, as you're probably aware. I intend on making an investment myself when the time is right.

    BVPs investment fund is entirely bond based so there is an exit plan unlike many eiis but the returns are relatively limited.


  • Registered Users Posts: 3 The quite man


    Did anyone invest in O’Hara’s? How's it going? They used the money to expand aggressively anyway.

    Anyone looking at any schemes for this year?

    Would anyone know what the expected return on investment is on eii investment schemes ,
    I was looking at using one to raise funds for a business ,


  • Registered Users Posts: 1,788 ✭✭✭ Cute Hoor


    Would anyone know what the expected return on investment is on eii investment schemes ,
    I was looking at using one to raise funds for a business ,

    Roughly 6%, could be more (probably 10% at most), could be less (all the way down to 0%)


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  • Registered Users Posts: 3 The quite man


    Cute Hoor wrote: »
    Roughly 6%, could be more (probably 10% at most), could be less (all the way down to 0%)

    Thanks for that ,
    Have you ever been involved in them from either end ?


  • Registered Users Posts: 1,788 ✭✭✭ Cute Hoor


    Thanks for that ,
    Have you ever been involved in them from either end ?

    I've invested in some, can send a few prospectūs if you want to have a look


  • Registered Users Posts: 421 ✭✭ the goon


    I invested in an EIIS last year. To be fair if I just got capital of 5k back (locked for 5 years) plus the tax relief of 2k I d be pretty happy.That said I queried the returns on previous years schemes and they had been surprisingly healthy.


  • Registered Users Posts: 21 Jcarver


    Is there any EIIS investments available currently through a Davys account?


  • Registered Users Posts: 40 ✭✭✭ damo642


    the goon wrote: »
    I invested in an EIIS last year. To be fair if I just got capital of 5k back (locked for 5 years) plus the tax relief of 2k I d be pretty happy.That said I queried the returns on previous years schemes and they had been surprisingly healthy.
    How did you query the return on previous years ?
    Are these companies trading on the ISEQ or how can you check their current share price to see how its going ?


  • Registered Users Posts: 1,788 ✭✭✭ Cute Hoor


    Revenue are killing this scheme, whether by accident or design, slowly and painfully, companies using EIIS cannot access Revenue (phones not answered and correspondence not being replied to) to see if their project is receiving Revenue approval, and RICT Certs not being issued by Revenue so EIIS investors cannot access their tax refund. Financial institutions offering EIIS opportunities are therefore opting out, I'd be surprised if anybody would be bothering their ass with this for this year or the future. A pity, it was a chance for new/young businesses to get a few bob on the cheap, and a chance for investors to make a few bob on the tax refund element.


  • Registered Users Posts: 1,788 ✭✭✭ Cute Hoor


    damo642 wrote: »
    How did you query the return on previous years ?
    Are these companies trading on the ISEQ or how can you check their current share price to see how its going ?

    These are new/start up businesses so you won't be seeing them on the ISEQ or any other exchanges. Generally speaking they provide an annual update.


  • Closed Accounts Posts: 336 ✭✭ Benildus


    Cute Hoor wrote: »
    Revenue are killing this scheme, whether by accident or design, slowly and painfully, companies using EIIS cannot access Revenue (phones not answered and correspondence not being replied to) to see if their project is receiving Revenue approval, and RICT Certs not being issued by Revenue so EIIS investors cannot access their tax refund. Financial institutions offering EIIS opportunities are therefore opting out, I'd be surprised if anybody would be bothering their ass with this for this year or the future. A pity, it was a chance for new/young businesses to get a few bob on the cheap, and a chance for investors to make a few bob on the tax refund element.


    It's shocking alright, Revenue didn't resource the department responsible for issuing the certs sufficiently.

    I've been waiting since January so I can do my 2017 return and get my refund. I invested last November in a scheme in Cork


  • Registered Users Posts: 49 ✭✭✭ Bradlin


    Benildus wrote: »
    It's shocking alright, Revenue didn't resource the department responsible for issuing the certs sufficiently.

    I've been waiting since January so I can do my 2017 return and get my refund. I invested last November in a scheme in Cork

    Agreed - it's one of the few good ideas the Revenue have implemented in Ireland to help SME's raise equity funding from new investors.

    Given that SME's themselves pay taxes and the staff they employ pay taxes, it's very short-sighted on the part of the Revenue not to be more responsive with this scheme.

    Also, it's not as if the Government is actually giving away any money - it is simply collecting less tax, and for the right reasons.


  • Registered Users Posts: 40 ✭✭✭ damo642


    Benildus wrote: »
    It's shocking alright, Revenue didn't resource the department responsible for issuing the certs sufficiently.

    I've been waiting since January so I can do my 2017 return and get my refund. I invested last November in a scheme in Cork

    Submit form 11 with the fund number. Apparently they will accept without the certs.... I am doing it this way in next 4 weeks on my form 11.


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  • Registered Users Posts: 10,928 ✭✭✭✭ phantom_lord


    I dunno about the value of this scheme, think it was just a way for the institutions to fleece the investors on fees for saving them some tax. I'm open to seeing figures on it, but I'm skeptical this was a great scheme for the economy or the exchequer in general.


  • Registered Users Posts: 19,020 ✭✭✭✭ Water John


    Well it was a great scheme for high earners with a guaranteed annual income, in the high tax bracket.
    Most of the investments were very low risk. That may have been the weakness from the country's POV. Higher risk early investment can yield high employment.


  • Registered Users Posts: 345 ✭✭ Gman1987


    Anyone come across any EIIS opportunities for 2019 yet that are worth considering?


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