Wednesday, 10 July 2019

Ceisteanna (137, 138, 139, 140, 141, 142, 143)

Joan Burton

Ceist:

137. 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 year since 2009 to 2018 to companies that did not pay corporation tax in each year; the estimated refunds or payable amounts to be paid out in 2018 and to date in 2019; the cost of the tax credit in each of those years; and if he will make a statement on the matter. [30305/19]

Amharc ar fhreagra

Joan Burton

Ceist:

138. Deputy Joan Burton asked the Minister for Finance the number of companies that claimed payable refundable research and development tax credits in each year since 2009 to date; the highest refund paid out in each year in tabular form; the average value of a refund in each year; and if he will make a statement on the matter. [30306/19]

Amharc ar fhreagra

Joan Burton

Ceist:

139. Deputy Joan Burton asked the Minister for Finance the projected savings in 2019 and 2020, respectively, if the research and development tax credit was no longer refundable or payable; and if he will make a statement on the matter. [30307/19]

Amharc ar fhreagra

Joan Burton

Ceist:

140. Deputy Joan Burton asked the Minister for Finance the outstanding liability to the State from refundable payable research and development credits; and if he will make a statement on the matter. [30308/19]

Amharc ar fhreagra

Joan Burton

Ceist:

141. 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 by which income tax bills were reduced in each year; the highest amount in each year; and if he will make a statement on the matter. [30309/19]

Amharc ar fhreagra

Joan Burton

Ceist:

142. Deputy Joan Burton asked the Minister for Finance the companies that have benefitted from payable refundable research and development tax credits and not paid corporation tax in that year; and if he will make a statement on the matter. [30310/19]

Amharc ar fhreagra

Joan Burton

Ceist:

143. Deputy Joan Burton asked the Minister for Finance the reason no supporting document in respect of qualifying research and development activity is required at the point of filing the CT1 form when claiming such repayable tax credits; and if he will make a statement on the matter. [30311/19]

Amharc ar fhreagra

Freagraí scríofa (Ceist ar Finance)

I propose to take Questions Nos. 137 to 143, inclusive, together.

I am advised by Revenue that detailed statistical information in respect of the Research & Development (R&D) credit is available at https://www.revenue.ie/en/corporate/information-about-revenue/statistics/tax-expenditures/r-and-d-tax-credits.aspx for 2012 to 2017 (earlier years are not readily available and estimates of refunds for future years are not prepared).

Regarding Questions 30305/19, 30306/19 and 30310/19, the published statistics include the cost of repayable tax credits (page 3). Where there is no Corporation Tax liability in a given year, a company may claim to have the credit paid to them in 3 instalments over a period of 33 months. The following table shows the number of companies and the average refund amount. Due to Revenue’s obligation to observe confidentiality for taxpayer information, it is not possible to show the highest refund.

Year

Number of Companies

Average Refund

2012

1,067

127,900

2013

1,092

215,650

2014

1,067

305,400

2015

1,027

349,450

2016

1,025

230,480

2017

1,025

147,800

Regarding Questions 30307/19 and 30308/19, it is not possible to accurately estimate the savings if the R&D tax credit was no longer payable, which would require an estimate of the outstanding liability to the State from refundable payable research and development credits, as information in respect of either the outstanding current liability or future expenditure is not available from tax returns. However, on the basis of claims from the 2017 tax returns, it is tentatively estimated that the full year gain from abolishing the refundable credits aspect of the R&D tax credit could be in the region of €150m.

Regarding Question 30309/19, information in respect of relief for key employees engaged in research and development activities is available on the tax returns for the years 2013 to 2017. Tax returns for later years are not yet available. The number of individuals claiming the relief for the years 2013, 2015 and 2017 was less than 10 in each of these years, with a cost in each year of less than €0.05 million. For 2014 there were 25 individuals with an average claim of €2,721. For 2016 there were 11 individuals with average claim of €4,438 The highest claim cannot be provided due to Revenue’s need to protect taxpayer confidentiality.

Finally regarding question 30311/19, I am advised by Revenue that companies currently claim the R&D tax credit when making their self-assessed tax return. Accordingly, there is no need for them to provide supporting documentation at the point of claim.

Revenue carries out a programme of targeted risk driven compliance interventions on self-assessment tax returns. Claims for the R&D tax credit fall within the scope and is one area of focus for this programme. Revenue is of the view that this is the most effective way for them to ensure that only valid claims for the research and development credit qualify as repayable tax credits.