Michael McGrath (Cork South Central, Fianna Fail)
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To ask the Minister for Finance the estimated full year cost of top slicing relief. [45576/12]

Michael Noonan (Limerick City, Fine Gael)
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I am advised by the Revenue Commissioners that the estimated cost to the Exchequer of top slicing relief in 2010, the latest year for which the necessary detailed information is available, is €36.7 million.

Michael McGrath (Cork South Central, Fianna Fail)
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To ask the Minister for Finance if he has an estimate of the cost of abolishing the base year in respect of research and development tax credits; and if he will make a statement on the matter. [45577/12]

Michael Noonan (Limerick City, Fine Gael)
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I am informed by the Revenue Commissioners that details of the amount of research and development (‘R&D’) tax credits currently being claimed by companies, together with their 2003 base year expenditure, are captured in corporation tax returns only where the amount of expenditure currently being claimed exceeds the base year amount. For companies whose current expenditure on R&D does not exceed their 2003 expenditure, no credit is due and information in relation to R&D expenditure in both the base year or current year are not required or entered on the corporation tax return and is consequently not available. Based solely on the companies with positive claims for R&D tax credits in their 2010 corporation tax returns, the full year cost of abolishing the base year is tentatively estimated to be in the region of €45m. However, caution should be exercised with regard to this figure as the full cost of abolishing the base year would additionally include companies whose current R&D expenditure does not exceed their 2003 base year spend. As already stated, the Revenue Commissioners do not have access to this additional information. Further, given that companies who have never claimed the credit are likely to have a high 2003 base year spend, which explains why they have never been able to claim the credit, the additional cost arising may be significant.

Taking all of these factors into consideration, the cost is likely to be greater than €45 million and possibly significantly so.