Family tree company not eligible for tax break after receiving €1.9 million in government support

An Irish company specializing in the provision of archives and genealogical records has lost an appeal against a €237,000 tax claim from the Revenue Commissioners.

The tax claim related to a €592,000 fundraiser carried out by the Eneclann company at the end of 2016. Funding came from a variety of supporters across the country.

The company applied for tax relief on the investment, but the Tax Appeals Commission has ruled that the IRS was correct in determining that Eneclann was not a qualifying company to claim the tax relief.

Eneclann was founded in 1998 by history graduates Brian Donovan and Fiona Fitzsimons.

It now offers a range of services including Irish family history research, heritage and history advice, archives and records management and the digitization of records.

In March 2017, Eneclann applied for corporate business investment relief in respect of the €592,000 financing it secured in 2016.

But the Revenue Commissioners refused to grant the relief requested. It said that Eneclann is not considered a qualifying company under the relevant legislation.

In making that decision, the Revenue Commissioners advised Eneclann that it was the beneficiary of nearly $1.9 million in seed capital relief at the time.

Revenue said Eneclann does not meet the requirements of EU exemption legislation because the company’s business plan did not address the need to raise additional venture funding on top of that already raised.

“Article 21 venture finance investments are state aid approved by the EU as venture finance investments,” Revenue noted.

The Revenue Commissioners informed Eneclann that their 2001 business plan called for an investment of £500,000 (punts) (€635,000) over a three year period from May 2001 through April 2004 inclusive.

The nearly €1.9 million in venture funding the company raised in the form of state aid in the form of EII, BES and Seed Capital Relief would have “far exceeded” what was envisaged in Eneclann’s original business plan.

The Tax Appeals Commission upheld the IRS’ refusal to grant tax breaks.

“It is understandable that the complainant will be disappointed with the outcome,” said Appeals Commissioner Clare O’Driscoll. “The applicant has rightly examined whether her statutory rights have been properly applied.” Family tree company not eligible for tax break after receiving €1.9 million in government support

Fry Electronics Team

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