29 September 2015 - NW3536
Paulsen, Mr N M to ask the Minister of Science and Technology
(1)In a view of the National Treasury's Budget Review stating that an estimated R5 billion in tax revenue was forgone during the period 1 April 2005 to 31 March 2012 due to the tax allowance under section 11D of the Income Tax Act, Act 58 of 1962, can the benefits of the tax incentive be quantified in terms of the (a) development of new products; and (b)number of (i) jobs and (ii) job opportunities that were created?
(1) (a) 1 062 new products were launched during the period November 2006 to February 2014. No data is available for the period before November 2006.
(b) (i) Since inception to February 2014 there were 25268 personnel directly employed by companies applying for the R&D tax incentive in conducting R&D..
(ii) Data is not available for the number of job opportunities created during the period 1st April 2005 to 31 March 2012. This is not one of the reporting parameters set by section 11D(17) whicht states that the Minister of Science and Technology must annually submit a report to Parliament advising Parliament of the direct benefit of the research and development in terms of economic growth, employment and other broader government objectives and the aggregate expenditure in respect of such activities without disclosing the identity of any person. Furthermore section 11D(13) states that a taxpayer carrying on research and development approved under subsection (9) must report to the committee annually with respect to the progress of the research and development and the extent to which that research and development requires specialized skills.