Pearse Doherty (Donegal South West, Sinn Fein)
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Question 134: To ask the Minister for Finance the number of companies availing of the research and development tax credit scheme from the years 2007 to 2010 scheme by industrial sector and on a county basis according to the registered trading address of each company as filed on those companies' CT1 forms. [21056/11]

Michael Noonan (Limerick City, Fine Gael)
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I am informed by the Revenue Commissioners that the numbers of companies claiming the research and development tax credit for the years 2007 to 2009 is derived from the corporation tax returns for those years. The breakdown by economic sector and on a county basis is set out separately in the following tables: Research & Development Tax Credit by Economic Sector

Research & Development Tax Credit by County:

The 2007 figures in the tables do not include some 253 applicants whose claims for the tax credit were submitted by means other than the tax returns. Due to the Revenue Commissioners' obligation to observe confidentiality for taxpayers and small groups of taxpayers certain companies have not been associated in the tables with their appropriate economic sector or county. These are included in the "Other" category of both tables instead.

The figures were given on the basis of "bailiwick", meaning, in this case, the jurisdiction or boundaries within which Revenue Sheriffs, County Registrars or their officers operate for the purposes of enforcement of tax debt and which equates geographically with "county". Companies are associated on the tax record with the county address of the head-office or branch with which contact is established for tax purposes, which may be different to the city or county addresses of other branches. The distribution of corporate tax between regions can also vary from year to year as companies relocate.

The sector identifier used on the tax records is based on the 4 digit "NACE code (Rev. 1)", an internationally recognised economic activity code system. The NACE codes are not essential for the assessment and collection of taxes and duties and the correct allocation and maintenance of these codes is subject to the limit of available resources. NACE code classifications on tax records are compiled by reference to the primary area of economic activity reported by individual and corporate taxpayers on their own behalf and the taxes collected are allocated to those codes without reference to the precise economic activity which generated them. While the accuracy of the NACE codes on tax records is sufficient to underpin broad sector-based analyses there will undoubtedly be some inaccuracies at individual level. This should be borne in mind when considering the information provided.

I am advised by Revenue that they are not in a position to provide data for 2010 as the bulk of corporation tax returns for that year are not yet due.

Pearse Doherty (Donegal South West, Sinn Fein)
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Question 135: To ask the Minister for Finance the number and value of companies in the mining and petroleum industry claiming research and development tax credits; and the taxable profits of these companies. [21057/11]

Michael Noonan (Limerick City, Fine Gael)
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I am informed by the Revenue Commissioners that their obligation to observe confidentiality for taxpayers and small groups of taxpayers precludes them from providing the information requested. I would draw the Deputy's attention to paragraph (i) of Appendix 2 of the R&D tax credit guidelines that are accessible on the Revenue website outlining categories of activity that are not research and development activities (e.g. prospecting, exploring or drilling for, or producing, minerals, petroleum or natural gas).

Pearse Doherty (Donegal South West, Sinn Fein)
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Question 136: To ask the Minister for Finance the potential gain to the Exchequer annually of placing a levy of 1% on the profits of holding companies here. [21059/11]

Michael Noonan (Limerick City, Fine Gael)
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Holding companies of domestic groups do not generally have profits chargeable to corporation tax and thus imposing a 1% levy would not provide a yield for the Exchequer. I am presuming, therefore, that the Deputy is referring to holding companies with foreign subsidiaries. It is not possible to predict the effect such a levy would have on the behaviour and decisions of holding companies with foreign subsidiaries. This uncertainty in relation to responses prevents a reliable estimate being made of any yield that might accrue to the Exchequer if such a levy were imposed on their profits.

In any event, such a levy would be unlikely to yield significant additional Irish tax. Many of the holding companies concerned would be entitled, under the terms of our Double Taxation Treaties, to reduce the additional charge by the amount of foreign tax paid on the profits out of which their dividend income was paid.