Research and Development Protective Claims

Follow-up to e-Brief No. 63/08

Revenue e-Brief No. 63/2008 advised of the new time limit in respect of research and development tax credit claims and of the administrative arrangements in relation to protective claims lodged in certain cases where the new time limit prevents a claim for a prior year.

This follow-up e-Brief sets out the specific details that must accompany any claim made in accordance with eBrief No. 63/2008 and the timeframe within which those specific details must be submitted in order to convert the protective claim into a valid claim.

The information set out in Annex 1 to this e-Brief must, on or before 30 April 2009, be submitted by claimant companies in respect of each research and development project carried on by the company. It is important to note that:

• Where a company carried on more than one such project, separate information must be provided in relation to each one;
• Claimant companies must submit a computation of the tax credit claimed in respect of each accounting period, showing clearly the threshold amount and outlining how this amount has been calculated;
• Any claims submitted with incomplete information, will not be considered; supplementary information received after 30/04/2009 will not be considered;
• Generic information, which is not project specific or which does not address the scientific issues in a specific and precise way, will not be accepted.

Summary guidance on what constitutes qualifying Research and Development activities is given in Annex 2 to this e-Brief. More detailed guidelines are available at www.revenue.ie. (Taxes & Duties – Corporation Tax).

Given that companies who have made protective claims in respect of prior years may have previously judged that they did not qualify for the credit, those companies should not now make a claim unless they can be fully satisfied that they:

• Satisfy the requirements in relation to scientific advance and resolution of scientific uncertainty;
• Have sufficient documentary evidence available to support their claim; and
• Can provide sufficient documentary evidence in relation to the costs claimed.

Claims for tax credits in respect of research and development will be subject to audit in accordance with the Code of Practice for Revenue Auditors and the Revenue Commissioners may consult with an expert in the relevant field of science and technology, as provided for in section 766(7).

Any queries should be addressed to:

Isolde Hampson or John O'Neill
Corporate Business & International Division
New Stamping Building
Dublin Castle
Dublin 2
ihampson@revenue.ie
joneill@revenue.ie