Dáil Éireann Debate, Thursday - 16 June 2022
74. Deputy Richard Boyd Barrett asked the Minister for Finance the assessments that are being carried out to establish whether the research and development tax credit is achieving its objective to stimulate same; if it is the most effective way to achieve this objective; and if he will make a statement on the matter. [31320/22]
Amharc ar fhreagraMy Department’s Tax Expenditure Guidelines set out procedures for best practice in the evaluation of tax expenditures, setting criteria for the review of the evidence base underpinning tax policy and to determine if tax relief schemes remain fit for purpose.
My officials are currently conducting an evaluation of the R&D tax credit. This review will comprise qualitative and economic analysis, as well as desk-based research on R&D initiatives in other jurisdictions. Officials are also considering the agreement reached at the OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting (BEPS) and other developments in international tax frameworks to assess any impact on the R&D tax credit, to ensure that Ireland can continue to support innovative R&D activities going forward.
As part of the assessment process, a public consultation was held on the credit, with a closing date for responses of 30 May 2022. Twenty written responses were received and Department officials are examining these submissions at present.
The evaluation document, as well as the responses to the consultation, will be published in due course as part of this year’s Budget and Finance Bill process.
