Taxes Consolidation Act 1997 section 508IA

Qualifying investment funds

Section 508IA defines what constitutes a qualifying investment fund for the purposes of the Employment Investment Incentive Scheme (EIIS) and sets out the conditions such a fund must satisfy.

• A qualifying investment fund must be either a limited partnership (managed by an alternative investment fund manager) or an investment limited partnership, established under a partnership agreement governed by Irish law whose principal business is investing in accordance with a defined investment policy for the benefit of its investors.
• The partnership agreement must require that funds are invested in eligible shares without undue delay, that pending moneys are held on deposit in a separate Irish bank account, and that dividends or interest received are distributed to partners promptly (subject only to management expenses at a rate stated in the agreement).
• The fund must prepare annual audited accounts and submit them to Revenue on request; the alternative investment fund manager must not be connected with any company in which the fund has invested; and any share discounts received by the manager must be accepted solely for the benefit of the partners.
• No partner may have eligible shares in any investee company transferred into his or her name until four years have elapsed from the date of issue of the shares to the fund, and any subscriptions not accepted must be returned without undue delay.