Professor Frank Barry:

As far as I understand, the difference between 12.5% and 11% is probably primarily in the research and development allowances. There are very generous research and development allowances. The Deputy is right in that they are under investigation by Revenue to the extent that they may be exploited but that the primary difference between the figures of 12.5% and 11% is that one gets big tax benefits in respect of certain expenditures on research and development.