Seanad debates

Thursday, 22 March 2012

Finance Bill 2012 (Certified Money Bill): Committee and Remaining Stages

 

1:00 am

Photo of Sean BarrettSean Barrett (Independent)

The recommendation refers to patents. I thank the Minister for his physics lecture. We will put it in the research and development section.

The Commission had strong views on tax exemptions on patent royalties. It stated: “We have reservations about the effectiveness of the measures in incentivising companies to engage in R&D activities in Ireland. We are of the view that the relief has not resulted to any great extent in companies carrying out R&D activity.” Where it was being used by such companies in some cases it was used as a tax avoidance device to remunerate employees. Everybody in the House has expressed a fear that the measure will turn into a tax avoidance scheme.

Section 12.4 refers to the tax exemption for patent royalties. The Minister expressed misgivings about other matters. The Commission put a caveat against proceeding with the measure, particularly given the fact it is sometimes used as a tax avoidance measure. Outputs are always desirable, but we have to consider whether we get them and if they are commensurate with costs.

Comments

No comments

Log in or join to post a public comment.