Frances Black (Independent) | Oireachtas source

I welcome the Minister to the House and thank her for bringing the Bill through the House. It proposes to expand access to the preferential tax rate for income generated on intellectual property and patents with the intention of nurturing innovation and encouraging companies to locate high value jobs in Ireland. I recognise the Minister and the Department have been engaging with us on this area and we are happy to work with the Minister and any other Members of the House on the Bill between now and Report Stage.

My colleague, Senator Higgins, has already debated a number of aspects of the Bill on Second and Committee Stages and I remind the House that during these contributions the Senator indicated her wish to withdraw her amendments and reserves the right to reintroduce them or variants of them on Report Stage.

With regard to amendments Nos. 10, 10a and 10b, the Bill, as drafted, does not require companies applying for the knowledge development box certificate to indicate whether they already benefit from other grants, subsidies, tax incentives or other enterprise and-or research and development supports from a public or semi-State body. There needs to be clear understanding of how the knowledge box certificate fits in with other grants, tax incentives or State supports the company receives or has received in the past so a big picture can be formed of Ireland's enterprise and innovation strategy.

As Senator Higgins has previously stated, we would like to see a cost-benefit analysis of the knowledge box proposal and for there to be an annual exchange of information between the Department and Revenue so a cost-benefit analysis of the knowledge development box can be conducted annually. The measure will have a cost in terms of tax revenue foregone. We need to have a clear picture of the annual cost to the Exchequer of the measure and be in a position to monitor and assess the costs and benefits of it over the coming years. We must be confident the knowledge development box operates in the way it was intended and does not lead to a disproportionate erosion of our tax base. I wish to withdraw the amendments co-signed with Senator Higgins and reserve the right to reintroduce them on Report Stage.