Revenue have recently released a manual setting out the Revenue procedure for appointing and briefing an independent expert to assist in evaluating the science test in R&D tax credit audits.
By way of background, each year, Revenue’s Incentives unit places an advertisement on the public procurement website, www.etenders.gov.ie1 , inviting applications for placement on a panel of experts to advise in relation to claims for tax credits in respect of incremental expenditure incurred wholly and exclusively on R&D.
Applications for membership of the panel will be accepted at any time during the year. In order, to be eligible to apply for a place on the panel, individuals must hold a relevant PhD or experiential equivalent. Where an independent expert is required in a field that is not represented on the panel formed from the above process, the Incentives unit will identify suitable experts and approach them with a view to their joining the panel.
The appropriate timing for appointing an independent expert will vary from case to case. In some cases, it will be necessary to appoint an independent expert at the outset of a review while in others one may only be required where Revenue and the company reach an impasse in relation to an aspect of the science test.
Independent experts should not be engaged to explain the science: they should only be engaged where there is a doubt that the science test has been met.
Full details of the manual and procedure can be found here