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SciMet R&D have made our pre-budget submission. It includes recommendations that, in our view, will help address some of the points raised during last years review regarding the administration of the R&D Tax Credit. We also make two recommendations that would benefit SMEs and Start-Ups in availing of the payable tax credit. Full details of our submission are set out below. If you have any queries or comments please let us know.

 

Budget 2015 Submission - The Research and Development Tax Credit

Introduction

In 2013, the Department of Finance conducted its most comprehensive review of the R&D Tax Credit since it was introduced in 2004. As well as engaging directly with R&D performing companies, an independent survey was commissioned and interested parties were invited to make submissions. As part of its submission, IBEC undertook its own survey of Irish companies and presented its findings. The Department of Finance subsequently published two detailed and insightful documents, the Review of Ireland’s Tax Credit in October 2013 and An Economic Approach to Evaluate the R&D Tax Credit in Ireland, earlier this year.  


The scale of the review and the wide variety of sources of input into the process have provided unprecedented volumes of quantitative data and qualitative feedback in relation to the R&D Tax Credit. All stakeholders presented their views and recommendations based on their own unique perspective. However, there was also some consistency among those that participated in surveys and submissions in highlighting areas that, in their view, require attention. Many highlighted the administration of the R&D Tax Credit as one such area. We believe that this year’s Budget represents an opportunity to address the points raised so as to deliver an R&D Tax Credit that remains “best in class”.


Approximately one third of the large companies that participated in IBEC’s survey regarded the “certainty that once claimed the tax credit can be retained under Revenue Audit” as poor or very poor. A similar proportion raised concerns about the lack of clarity surrounding what constitutes qualifying activities for the purposes of the tax credit. Many of the submissions also highlighted the need for greater certainty, clarity and consistency as high priority issues. As the review was policy focused, these issues were not addressed in the final report issued by the Department of Finance.  However, it was confirmed in the report that the feedback would be forwarded to the Revenue Commissioners.


Since then, we are pleased to hear that work has been initiated to update the Revenue Guidelines for Research and Development Tax Credit and that these are due to issue in the near future. We hope that the updated Guidelines will assist in providing the certainty and clarity that R&D performing companies are seeking. We have a number of other recommendations that we believe will further assist these companies and have set these out in Recommendations 1 to 4 below.


We also include a further two recommendations (Recommendations 5 and 6) that in our view, would have a positive impact on many SME and Start-Up companies without incurring significant additional exchequer costs. 

About Us

SciMet R&D is the leading, Irish owned, independent R&D Tax Credit consultancy. The company was founded on a simple principle – to consistently deliver exceptional service and value to R&D performing companies in claiming their full and proper R&D Tax Credit entitlement.

We achieve this by delivering the perfect blend of science, technology, tax and accounting expertise. The R&D Tax Credit is unique in that it combines a science test with an accounting test. SciMet R&D is unique in the Irish market in the value we bring to our clients in meeting both tests.

At SciMet R&D we are truly passionate about science and technology. It motivates us to be able to play a part in the exciting research and development being carried out by our clients.  Our tailor-made R&D Tax Credit services deliver efficiencies, robustness and cost effectiveness that facilitate our clients in doing what they do best – innovate.

Our Address: Unit 3, Cova, Trafalgar Road, Greystones, Co. Wicklow