Ireland's Patent Income Exemption

So, the Government is proposing to abolish Ireland's Patent Income Exemption with effect from 24 November 2010 (http://www.finance.gov.ie/viewdoc.asp?DocID=6599).  In truth, it's difficult to know to what extent the relief attracts innovation into Ireland, and the relief has attracted some bad press (http://www.irishtimes.com/newspaper/finance/2010/0723/1224275295222.html).

I understand that IBEC, the Irish Software Assocation and others are lobbying the Department of Finance to row back on their decision.  But, from what I've heard, the exemption is part of the price for retaining our 12.5% rate of corporation tax.

It doesn't help that the Commission on Taxation recommended abolition of the relief in 2009 (http://www.commissionontaxation.ie/Report.asp).  Ironically, only one member of the Commission refused to sign the report - that was Brendan Hayes, Vice President of SIPTU.  The consenting members of the Commission are below. 

Now, nobody asked me.  But it would be helpful if the consenting members issued a joint statement retracting their support for "the tax exemption for patent royalties to be discontinued".  As I said, nobody has asked me. 

•Tom Arnold, CEO, Concern
•Julie Burke, JMB Tax Solicitors
•Micheál Collins, Department of Economics, Trinity College
•Frank Convery, Heritage Trust Professor of Environmental Policy
•Tom Donohue, Partner, Russell Brennan Keane Chartered Accountants
•Eoin Fahy, KBC Asset Management
•Colin Hunt, Division Director, Macquarie Capital Group
•Sinead Leech, Director, Integral Finance and Technology Ltd
•Con Lucey, Chief Economist, Irish Farmers Association
•Danny McCoy, Director, IBEC
•Feargal O’Rourke, Partner, PWC
•Mary O’Sullivan, Irish Banking Federation
•Mark Redmond, CEO, Irish Taxation Institute
•Willie Soffe, Chairman, Dublin Transportation Office
•Mary Walsh, Chartered Accountant