Ms Cora O'Brien:

Ireland has worked hard to design a research and development regime which makes a positive contribution to the economy. The Department of Finance has done much analysis on this as it is a costly regime. All of the economic analyses on it show it actually gives back more in business and jobs than it creates in revenue. It is not the most straightforward regime and there have been many changes to it, as we have refined and improved it to make it more suitable. One element of it involves a deduction from profits and another is a credit against the tax that one owes. Overall, when it is put together, it is an attractive regime.

The regime proposed in the CCCTB, which is called a super deduction, is still not as good a regime as the one we have worked hard to get to - our best in class. We have also knitted this research and development regime in with our knowledge development box. This is one of the first patent boxes which meets the OECD test of substance. The idea is that, hand in hand, the company gets a tax deduction for the research and development it carries out. Provided it does the work on the ground, has the factories and the white coats here, and commercialises the research and development, one can get a lower rate on the commercialised product. That is where they work together. That is us trying to match our tax policy towards our economic policy.