R&D technical reports – Protecting your R&D Tax Credit claim

While an R&D report is not mandatory, it is widely regarded as best practice – particularly given Revenue’s increasing scrutiny and the substantial value often attached to R&D claims.

Forvis Mazars supports clients by preparing Revenue‑audit‑ready R&D technical reports that clearly set out the scientific and technological basis of the claim. These reports are designed to withstand detailed review and ensure that your company is fully prepared for any potential future Revenue Intervention.

Why R&D reports matter

Revenue may open an Intervention into an R&D tax credit claim up to four years after the end of the relevant accounting period. By that point, it is not uncommon for:

• Key technical personnel to have left the company.
• Project knowledge to have faded.
• Documentation to be incomplete or scattered.
• The company’s ability to recall the specific R&D advancements and uncertainties to be restricted.

This can create significant challenges for companies attempting to defend historical claims within the tight timeframes typically imposed during a Revenue Intervention.

Our R&D reports address these challenges head-on by creating a contemporary, structured and defensible record of all R&D activities, aligned with Revenue’s current expectations and the OECD Frascati principles on which the Irish regime is based.

What our R&D report includes

Each report provides a comprehensive overview of the scientific or technological aspects of your R&D claim, including:

• Clear articulation of the baseline knowledge and capability.
• The specific scientific/technological advancements sought.
• The uncertainties encountered and why they could not be resolved by a competent professional.
• A detailed narrative of the work carried out, year by year and project by project.
• Mapping to qualifying activities as defined under Ireland’s tax legislation.
• Supporting evidence and methodology, prepared in a format familiar to Revenue.

As one of Ireland’s most experienced R&D tax credit service providers, and with our extensive experience over the years, we are familiar with the full breadth of questions Revenue typically raises. Our reports are structured to proactively answer these questions – reducing the likelihood of challenges and ensuring your claim is on a strong footing from day one.

When clients typically engage us for R&D reports

While all claimants of the R&D tax credit will prepare a calculation of the tax credit, a large portion also opt for the R&D report service due to its strategic value in protecting and substantiating the claim. Common scenarios include:

1. Companies that have previously received Revenue Interventions.
   These companies understand the pressure of responding quickly and the difficulty in reconstructing detailed technical information years after the R&D work occurred.
2. Companies with substantial R&D tax credit claims.
   Where material tax credit claims are at stake, management teams often seek to better safeguard the claim through comprehensive contemporaneous documentation.
3. Publicly quoted companies.
   Listed companies typically require rigorous audit trails, robust governance, and reduced exposure to tax risk – making the annual preparation of R&D reports standard practice.
4. Companies anticipating a future sale or raising investment.
   Potential buyers and investors frequently carry out detailed tax due diligence.
   Having clear, structured R&D reports in place provides confidence that historical claims are well supported and reduces deal‑execution risk.

Why clients report annually

For many of our clients with large or complex RDTC claims, the R&D report is an integral part of their annual compliance and governance framework. Preparing the documentation each year ensures:

• Consistency of technical evidence.
• Alignment with evolving Revenue practice.
• Reduced exposure in the event of a future query.
• Smooth handover of knowledge even if personnel change.
• Stronger positioning in any due diligence or audit scenario.

This proactive approach significantly reduces risk and ensures that the company is prepared for any future technical review.

Protecting your claim today – and in the future

Defending an R&D tax credit claim without proper documentation can be time‑consuming, costly and stressful. Our specialised R&D report service mitigates these risks by producing clear, Revenue‑aligned technical substantiation at the time of the claim, not years later.

If you would like to discuss how an R&D report can strengthen your company’s tax position, please contact our team. We would be delighted to support you.