Posted June 9th, 2011
According to a study to be released this week, more than eighty per cent of small and medium-sized businesses (SMEs) are not claiming tax relief for research and development (R&D). The survey will also show that two in five of such businesses didn’t know that they were in a position to claim tax credits.
Ken Hardy, a partner with the KPMG research and development team, said that a big reason why R&D was neglected was because of its reputation as a “white coat phenomenon, often involving multinationals.” Hardy said that the reality inIreland right now is that very little research is being undertaken, while it is quite the opposite for development.
“While we don’t do a significant amount of pure research, we do conduct significant amounts of development work, particularly in food and drink manufacturing, engineering, software and agriculture,” Hardy said. Hardy has welcomed the recent revamping of the tax credit scheme by Minister for Enterprise, Jobs and Innovation, Richard Bruton.
The study found that if the R&D tax credit were increased from 25 per cent to 35 per cent, over one third of companies would increase employment and invest in R&D activities