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IRDG Cork Seminar 2 September 2014 Brian Boyle Incentives & - - PowerPoint PPT Presentation
IRDG Cork Seminar 2 September 2014 Brian Boyle Incentives & - - PowerPoint PPT Presentation
Audit Update & Revised Guidance IRDG Cork Seminar 2 September 2014 Brian Boyle Incentives & Financial Services Branch Relief is given In respect of Qualifying expenditure, On Qualifying activity, by a Qualifying Company
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Relief is given…
In respect of
- Qualifying expenditure,
- On Qualifying activity, by a
- Qualifying Company
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- Trading or 51% sub of
trading co.
- Carries out R&D
- Maintains a record
Qualifying is not Rocket Science
Qualifying Company
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- Scientific or Technological
Advancement
- Resolution of Uncertainty
- Systematic Approach
Qualifying is not Rocket Science
Qualifying Activity
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Qualifying Expenditure
S.766 (1)(a) …means expenditure… incurred by the company wholly and exclusively
in the carrying on by it
- f research and development activities
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Those Key Words
- In the carrying on – Not before,
after or ancillary to
- By it – Except for limited
- utsourcing/subcontracting
- Of R&D activity – And only of R&D
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Revenue Interventions
- Aspect Queries
Correspondence
- Audits
Desk or on-site Code of Practice
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Aspect Query Letter
- 23 Points of interest
- May resolve all questions
- May lead on to audit
- Note AQ is not an audit
- Adjustments treated as
“Unprompted”
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- The number of projects undertaken
- A summary of the research and
development activities in relation to each project.
- The date each project commenced.
- The date each project ceased if applicable.
- Outline the specific scientific or
technological advancement, which the company sought to achieve at the start of each project. Qualifying is not Rocket Science
Some of those Questions
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The Audit Process
- Code of Practice
– 21 Days Notice – Disclosure period
- Use of Experts
- Findings
- Settlement
- Appeals and disputes
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What can go Wrong?
- Science Test
- Accounting Test
- Poor Records
- Non Qualifying Activity
- If in doubt – Ask!
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The Science Test
Qualifying activity
Systematic Scientific or technological uncertainty
Panel of Experts
Right of refusal Confidentiality
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- Attribution of Costs
- Resources (Whole or Part?)
- Buildings (Whole or Part?)
- Qualifying activity
- Carried on by it?
- Peripheral/Ancillary Activity
- Base year issues
Qualifying is not Rocket Science
Accounting Tests
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- Trading and
- Maintains a record
– Activities – Begin/End – Resources – Times/Dates
- Project Governance
Disciplines
Qualifying is not Rocket Science
Qualifying Company
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- A much anticipated bestseller
- Clarification of issues arising
– Successor Company Issues – Base Year Issues – Software Development/Agile Methods – Consumables – Just and Reasonable – Human Resource Accounting/Records – Residual Product – R&D Incidental to Trade – Buildings/Plant & Capital Allowances
More and Clearer Examples Qualifying is not Rocket Science
Guidance Note 2014
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