Dáil Éireann Debate, Thursday - 21 September 2017
60. Deputy Joan Burton asked the Minister for Finance the value of payable refundable research and development tax credits paid out by the Revenue Commissioners in each of the years 2009 to 2016 to companies that did not pay corporation tax in those years; the estimated refunds or payable amounts to be paid out in 2017; the cost of the research and development tax credit in each of those years; and if he will make a statement on the matter. [39981/17]
View answer61. Deputy Joan Burton asked the Minister for Finance the number of companies that claimed payable refundable research and development tax credits in each years 2009 to 2016 and to date in 2017; the highest refund paid out in each year; the average value of a refund in each year, in tabular form; and if he will make a statement on the matter. [39982/17]
View answer62. Deputy Joan Burton asked the Minister for Finance the projected savings in 2018 if the research and development tax credit was no longer refundable or payable; and if he will make a statement on the matter. [39983/17]
View answer63. Deputy Joan Burton asked the Minister for Finance the outstanding liability from refundable payable research and development credits; and if he will make a statement on the matter. [39984/17]
View answer65. Deputy Joan Burton asked the Minister for Finance the number of persons in each year since it was introduced who have had their personal income tax bill reduced through the use of the research and development tax credit; the average amount in each year by which income tax bills were reduced; the highest amount in each year; and if he will make a statement on the matter. [39986/17]
View answer66. Deputy Joan Burton asked the Minister for Finance the companies that have benefitted from payable refundable research and development tax credits in which corporation tax has not been paid in that year; and if he will make a statement on the matter. [39987/17]
View answer67. Deputy Joan Burton asked the Minister for Finance the reason no supporting document on qualifying research and development activity is required at the point of filing the CT1 form when claiming repayable research and development tax credits; and if he will make a statement on the matter. [39988/17]
View answerI propose to take Questions Nos. 60 to 63, inclusive, and 65 to 67, inclusive, together.
I am advised by Revenue that information in respect of the annual tax cost of the research and development tax credit for years up to 2015, the latest year available, is at the following link
www.revenue.ie/en/corporate/documents/statistics/tax-expenditures/costs-tax-expenditures.pdf.
Information in respect of research and development tax credit from corporation tax returns for the tax year 2016 is not yet available. Additionally, the Deputy may be interested in a recent analysis of the credit which is accessible at
http://igees.gov.ie/wp-content/uploads/2014/01/R-and-D-Credit-Evaluation-2016.pdf.
The information requested by the Deputy in respect of refundable research and development tax credits is available from corporation tax returns filed for the years 2009 to 2015 and is as shown in the following table. Because of the Revenue Commissioners' obligation to observe confidentiality in relation to the taxation affairs of taxpayers, a figure for the highest refund has not been provided.
|
Year |
Number of companies with refundable research and development tax credits |
Refundable research and development tax credits €m |
Average Refund € |
|
2009 |
379 |
32.5 |
85,882 |
|
2010 |
713 |
65.0 |
91,164 |
|
2011 |
920 |
106.3 |
115,543 |
|
2012 |
1,067 |
136.5 |
127,929 |
|
2013 |
1,092 |
235.5 |
215,659 |
|
2014 |
1,067 |
325.8 |
305,342 |
|
2015 |
1,027 |
358.9 |
349,464 |
It is not possible to accurately estimate the yield from abolishing the refundable credits aspect of the research and development tax credit as information in respect of current research and development expenditure and claims is not available However, on the basis of claims from the 2015 tax returns, the full year gain from the proposal could be in the region of €300m.
Information is not available in respect of the current outstanding liability from refundable payable research and development credits as that would require analysis of the 2017 corporation tax returns. However, from information available on the 2015 corporation tax returns, the estimated outstanding liability in respect of research and development tax credits at that time for use in later accounting periods was in the region of €330 million.
Information in respect of relief for key employees engaged in research and development activities is available on the income tax returns for the years 2013 to 2015. Tax returns for later years are not yet available. The number of individuals claiming the relief for the years 2013 and 2015 is less than 10 with a cost in each year of less than €0.05 million. For 2014 there were 25 individuals with claims for the credit of less than €0.1 million and an average claim of €2,721. Again the highest claim cannot be provided for the reasons outlined earlier.
