Multinationals ‘exaggerated’ research activity to lower tax bills
Departmental review indicates contentious tax credit plays vital role in supporting jobs
Companies were forced to repay the exchequer a record €21 million in back-tax following more than 200 audits in 2013. Photograph: Getty Images
Several multinational firms have been found to be aggressively and improperly claiming tax credits for research and development to lower their corporation tax bills.
A Government scheme gives firms up to 25 per cent of their expenditure on R&D in the form of cash or a credit against their corporation tax.