The Voice & Innovation Network for Industry R&D
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1 The Voice & Innovation Network for Industry R&D
2 R&D Tax Credit Audit be prepared! Agenda Introduction, Welcome & Overview of IRDG Denis Hayes Overview of R&D Tax Credit Scheme & Audit Process Ken Hardy, KPMG Case Study: Takeda Ireland Dominic O Connor, Takeda Break for Tea/Coffee and Networking Revenue perspective on R&D Tax Credit Audits John Browne, Revenue Industry Perspective: Lynch Technical & Innovation Services Frank Lynch Questions & Answers Light Lunch R&D Tax Credit Audit be prepared! Silver Springs Hotel, Cork, 11 th October
3 Who we are Representative Group for manufacturing & services companies involved in Research, Development & Innovation Established 1992 Industry-led Independent Non-profit body Membership based The Unique Voice for Industry R&D Members are: All R&D performers All sectors & sizes: 2-2,500 prs Irish owned / multinational The Innovation Network for Industry R&D IRDG Team: 4 employees Denis Hayes, MD; Mary Byrne, Membership Dev/Communications Manager; Kathleen Bond & Lorraine O Farrell (Office). Supported by highly experienced Board of Directors.
4 Sample of Members Diverse Membership Covering all Business Sectors Nationwide Healthcare & Medical Devices, Engineering, Software & Technology, Food & Drink, Services, Education, Energy & Environment, Agriculture, Construction
5 Collaboration Innovation Networking What we do - 5 Pillars of IRDG Activity - Representation Learning Funding & Support
6 Representation - Represent members & influence on their behalf - Who? Finance, Revenue, EI, IDA, SFI Politicians About? Incentives for Company R&D R&D Policy R&D Tax Credits Grants 5 Pillars I.P / Patent Collaboration
7 Funding & Support - Information & Support on R&D Grants, R&D Tax Credits & more - Ensure members maximising R&D Grants & Tax Credits Intangible Assets / Intellectual Property Guide & assist applications and claims Up to date on new developments 5 Pillars Support with Innovation Strategy Product and processes R&D - not rocket science Projects don t need to be a technical or commercial success
8 Innovation Networking - Connecting members and facilitating sharing of best & fresh practice both within and outside of IRDG - Members actively involved Employees with R&D contribution at all levels welcome to participate Building relationships Sharing of best & fresh practice Problem solving IRDG Innovation Network is an EIN 5 Pillars that is supported by Enterprise Ireland
9 5 Pillars Collaboration - Connecting members with each other and third level research institutes - Company Company Company Third Level Exchange information Conduct cutting edge research Avail of external expertise Commercialisation opportunities for companies
10 Learning - Building & developing members R&D and Innovation skills- Learning & Innovation go hand in hand. The arrogance of success is to think that what you did yesterday will be sufficient for tomorrow William Pollard Innovation Practice Groups Peer to peer learning Short seminars 5 Pillars Credited courses & more...
11 Be Part of IRDG - R&D is not only men in white coats - Individual Service to meet Your Company Needs Activity Calendar Innovation Practice Groups - Microsoft, Medtronic & more (members only) R&D Tax Credit Audits be prepared! Cork, 11 th Oct Collaborate to Innovate, Dublin 23 rd Oct Intellectual Property, Nov, Dublin (members only) Funds & Expertise for R&D, Dublin (February 2013) Note: All of the above events are supported by Enterprise Ireland under the EIN and are free to attend.
12 The Voice & Innovation Network for Industry R&D Welcoming New Members Contact Denis Hayes or Mary Byrne Online - Twitter LinkedIn Group for Members
13 R&D Tax Credits Designed to incentivise R&D within Irish business Introduced in Incremental spend over m - 280m per annum Over 1100 companies 25% tax rate Reduces the real cost of R&D by up to 37.5% Net of R&D grants received from State / EU Offset against Corporation Tax Repayment in cash where no tax liability Surrender of tax credit to key employees
14 R&D Tax Credits However... Self-declaratory scheme Strict definition of what constitutes qualifying R&D 5 Technical Criteria incl. TA s and TU s Supporting documentation & real-time records Subject to audit (up to 4 years) Audit - Request for additional information e.g. 23 questions - Financial Audit - Full Technical & Financial Audit Reduction in the claim, repayment of part or all of credit with interest and penalties. Increased scrutiny
15 IRDG & Tax Credits Key Issues and Challenges Identified by IRDG Members Uncertainty regarding qualifying R&D Audit process Surrender of credit to key employees 2003 base year Sub-contract scope and definition Documentation requirements Alignment of R&D Grant and Tax Credit
16 IRDG & Tax Credits Keep the Members Informed - Post regular updates by , website, LinkedIn - Hold information seminars e.g. Dublin & Cork in Present to / train individual companies Represent R&D-Performing Companies - Formal and informal surveys - Working Groups - Submissions e.g. pre-budget - Meetings with DoF, Revenue, EI, IDA Support Individual Member Companies - Advice on technical aspects of claims - Advice on documentation - Advice and support pre-audit
17 R&D Tax Credit Audit be prepared! Agenda Introduction, Welcome & Overview of IRDG Denis Hayes Overview of R&D Tax Credit Scheme & Audit Process Ken Hardy, KPMG Case Study: Takeda Ireland Dominic O Connor, Takeda Break for Tea/Coffee and Networking Revenue perspective on R&D Tax Credit Audits John Browne, Revenue Industry Perspective: Lynch Technical & Innovation Services Frank Lynch Questions & Answers Light Lunch R&D Tax Credit Audit be prepared! Silver Springs Hotel, Cork, 11 th October
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