Dáil Éireann Debate, Monday - 11 September 2017
175. Deputy Joan Burton asked the Minister for Finance the steps his Department and the Revenue Commissioners have taken to address problems experienced by SMEs in applying for the research and development tax credit and the administrative burdens associated with it; and if he will make a statement on the matter. [38051/17]
View answerThere are a number of elements of R&D tax credit regime which are of particular assistance to SMEs. These include the refundable element of the credit which helps cash-flow; the key employee provision to help them to attract talent; the removal of the base year in 2015; and generous limits on outsourcing.
Revenue has taken a number of steps to assist companies in making claims for the R&D tax credit:
- In 2015 Revenue published revised guidance which addressed issues Revenue was encountering on audits of claims for the R&D credit. Following on from the publication of that guidance, Revenue has presented at conferences around the country (such as the Industry Research & Development Group conferences which are attended by companies, advisors and educators), building awareness of the R&D tax credit and the common issues that arise.
- In February 2017 Revenue issued guidance aimed specifically at micro and small companies. The aim of this new guidance was to give these smaller companies greater clarity on how they could show to Revenue that their R&D tax credit claim satisfied the “science test”.
- In February 2017 Revenue also issued guidance which aimed to provide greater transparency on the appointment and use of independent experts in Revenue reviews of R&D tax credit claims.
