Pearse Doherty TD calls for overhaul of R and D Tax Credit while multinationals soak up the relief
Sinn Féin Finance spokesperson Pearse Doherty TD has again called for an overhaul of how the Research and Development (R and D) tax credit works in the State as new figures show that SMEs are only befitting from a quarter of the total cost.
He said that the indication all pointed to multinationals soaking up the vast majority of the credit.
Deputy Doherty said:
“I am once again taken aback at how much of this credit is being soaked up by larger companies. In 2016, the fact that 167 'Large case Division' i.e. multinationals made claims of over €543 million euro under the credit while the remaining 1,339 claims only amount to €127m shows that this credit is still wide open to exploitation by a small number of very large companies.
"When we consider that 1,204 SMEs benefitted by only €147m in 2016 we must accept that the credit is in need of an overhaul to make it more accessible to SMEs and to ensure it is not another tool in the avoidance box of multinationals.
"It is to be welcomed that the total cost which had spiralled from €282m in 2012 to €708m in 2015 has hopefully peaked as it dropped slightly to €670m in 2016. As long as SMEs make up 90% of the claimants but again only 22% of the credits there is an issue.
"I am determined that this issue is dealt with in the upcoming budget and that much needed reform is implemented."