Taxes Consolidation Act 1997 section 508X

Treatment of statement of qualification as a return

Section 508X applies the tax penalty regime to statements of qualification issued by companies under the Employment Investment Incentive (EII) scheme, treating those statements as if they were tax returns.

• A statement of qualification, a statement of qualification (second stage relief) or a statement of qualification (SURE) provided to an investor is treated as a tax return made by the company for penalty purposes.
• The penalty amount is calculated as 25 per cent of the relevant amounts referred to in section 508U, and where relief is withdrawn because the company is not a qualifying company, the full amount is treated as a tax liability of the company that issued the incorrect statement.
• References in the penalty provisions to "the person concerned" are read as references to the qualifying investor or specified individual, and references to "that person" are read as references to the company that provided the statement.
• For the purposes of the published list of tax defaulters, any interest on late payment and the calculated tax liability are attributed to the company that provided the statement to the specified individual.