Recent News

January 2009
O’Flynn Exhams welcomes announcement of economic recovery plan

  In a recent White Paper, entitled “Building Ireland's Smart Economy: A Framework for Sustainable Economic Renewal”, the Irish government announced proposals to attract research and development, technology and green enterprise business investment to Ireland through the establishment of State-backed venture capital funds worth €500 million, to be known as “Innovation Fund – Ireland”. The funds will be divided into five venture funds of between €75-150 million each and they will operate over ten years. The primary aim of the funds will be to support early stage research and development intensive SME’s, in coordination with the existing financial supports available from Enterprise Ireland.

Other Government proposals include:

• Ireland is to be marketed as “The Innovation Island” and a destination of choice for European and overseas entrepreneurs;
• Multinationals are to be incentivised to intensify innovative, high value activity in Ireland;
• An action plan is to be developed to improve trade, investment and tourism links with new and fast developing markets by the end of 2009;
• More favourable tax treatment of the ‘carried interest’ of venture capital at a rate of 15% for partnerships and 12.5% for companies, in addition to a range of favourable taxation measures including exemption from corporation tax arising in the first three years of a business start-up, a tax abatement scheme for restricted shares and a refund of forfeited shares to assist companies in retaining key employees;
• Continued substantial investment in research and development and the introduction of significantly enhanced tax arrangements for companies involved in research and development  including an increase in the rate of tax credit for research and development expenditure from 20% to 25% as well as revised arrangements for the taxation of intellectual property;
• Particular focus on opportunities in the renewable energy and environmental technologies areas, including the development and commercialisation of ocean energy; and
• The development of green enterprise in Ireland.

These Government proposals represent attractive opportunities and incentives for foreign and indigenous investors. Further details of the plan are to be published in the coming months.

O’Flynn Exhams has extensive experience in advising clients in relation to investment-related matters in addition to advising clients involved in the research and development, manufacturing, technology and energy sectors. For further information please contact any member of our corporate/commercial team:
Irene O'Donovan
Richard Neville
Frank M O'Flynn
John P. Gaffney
Jerome Maume

“The aim is that Ireland becomes one of the world’s leading locations for business innovation, a countrywhere there will be a criticalmass ofcompanies – both Irish and international – at theforefront of innovation,creating the products and services of tomorrowand well-paidemployment”