Dáil Éireann Debate, Tuesday - 4 December 2012
143. Deputy Stephen S. Donnelly asked the Minister for Finance the rationale for the tax rule which prevents a person from availing of research and development tax credits if they own more than 10% of the company involved; and if he will make a statement on the matter. [53878/12]
View answerI assume that the Deputy is referring to the ‘key employee’ provision of the R&D tax credit which allows the tax credit to be transferred to a person key to carrying out of R&D in order to encourage them to drive R&D projects and to bring them to Ireland. This provision is restricted to a person who owns less than 5% of the company. The objective of the provisions is to allow companies attract and retain employees that are key to driving and developing R&D projects in the company. It is not intended to be a mechanism to reward the owners of companies, hence the restriction.
