James Lawless (Kildare North, Fianna Fail) | Oireachtas source

I move amendment No. 1:

In page 9, between lines 10 and 11, to insert the following:“(5) The Office of the Revenue Commissioners shall, within 3 months of the enactment of this Act, publish a guidance document to provide information to businesses considering making an application for a KDB certificate.”.

The intention of the amendment is to require Revenue to supply guidelines to assist and advise companies that may be applying to receive a certificate on how to do so. The feedback from the research and development tax credit, which is a similar measure, highlights the experience of many companies. These companies apply for the credit. Then they prepare the accounts and file on the basis of the innovation or research activity undertaken. Subsequently, they find that they have not qualified or that they have qualified but only subject to a Revenue audit later in the process under which there is a claw-back mechanism. This is frustrating for the companies involved. It is counterproductive in the context of the intention of the scheme. It represents a barrier, especially for small and medium sized companies trying to avail of the scheme. The nature of smaller companies means they do not have the cashflow to take a risk in applying for credit or to avail of credit that may be clawed back at a later stage. In fact, it amounts to a block in availing of the credit.

We took the view on Second Stage and Committee Stage that the Bill was worthwhile. We will be supporting the Bill as a whole. However, we want to see this provision carried through in order that innovation is encouraged and that companies can be given every opportunity to avail of it. We are keen for exposure to be maximised in the sense that companies have clear guidance on what is relevant and what is not, on what is applicable and what is not and on what does and does not fall into the parameters of the scheme.

When I made similar points on Second Stage, the Minister for Jobs, Enterprise and Innovation, Deputy Mitchell O'Connor, acknowledged them. She indicated her agreement and said that she would require Revenue to issue such guidelines. The intentions of the Minister are welcome and they mirror my intentions. However, to be certain, my approach has been to put this measure into the Bill. I have included it as an amendment in order that the Revenue guidelines are mandatory and included within three months of the passage of the legislation. This will ensure that small and medium-sized enterprises seeking to avail of the provisions can do so with certainty and confidence. It will mean they can enter into the sphere with that at their back. That is the thrust of the amendment. I hope the Government will accept it. I call on the other parties in the House to support it as well.

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