R&D Ina Shuí

at

revenue-audit

Carl O’Brien, in today’s Irish Times, reports that a Government scheme – which sees multinationals get 25% of their expenditure on research and development in cash or credit against their corporation tax – is being abused by certain companies.

Mr O’Brien reports that Revenue audits have found certain UNNAMED companies are exaggerating their R&D costs in order to lower their tax bills.

In 2013, the companies had to pay €21million in back-tax after audits, while provisional figures for 2014 – that are likely to rise as ongoing audits are finished – show another €14million has been paid back.

Mr O’Brien reported:

“Official figures show the credit is used predominantly by multinational firms and other large employers in the tech and manufacturing sectors… More than 1,500 companies availed of the credit last year, up from just 75 in 2004. Over that same period, the cost to the exchequer – in credits and foregone taxes – has risen from just over €70 million to more than €400 million last year.

While the credit has been identified internally by Revenue as a “significant risk”, a recent review by the Department of Finance found it played a vital role in supporting thousands of jobs and almost €2 billion of research activity. Industry sources say it helps support as many as 19,000 jobs.”

Multinationals ‘exaggerated’ research activity to lower tax bills (Irish Times)

Sponsored Link

6 thoughts on “R&D Ina Shuí

  1. 15 cents

    they bend over backwards to insure eff all corporate tax gets paid.. and its coz they wanna keep them happy so jobs are there.. but theyre not guna uproot and leave for fupp sake, start makin a bit of cash off them.

  2. phil

    Its not just Multinationals, Irish IT companies can claim this too , and its not 25% as far as I know , its was changed to 55% a few yrs ago.

    You are not supposed to submit hours for , QA, Bug fixing, or anything outside R&D or new features , basically a handful of developers. Are 19,000 engineers really developing new features ? Id doubt it…

    I remember one boss in the pub whinging about welfare cheats one friday evening, called them scum, I piped up that we must be scum too because the last submission to the IDA included QA hours, thats cheating as well …

    Naturally he didnt see the connection …

Comments are closed.

Sponsored Link
Broadsheet.ie