Vol. 412 No. 5
68 Mr. Noonan (Limerick East) asked the Minister for Finance if the German Government still intend to unilaterally alter the joint taxation agreement between Germany and Ireland to prevent avoidance of taxes by German taxpayers who invest in the Dublin Financial Services Centre; and if he will make a statement on the matter.
The German authorities do not propose to unilaterally alter the double taxation convention between Ireland and Germany. They have proposed the introduction of domestic legislation which will have the effect of attributing the investment income of foreign subsidiaries to German parent companies in certain circumstances. The legislation is not aimed specifically at Ireland; it will, if enacted, be applicable on a world-wide basis. There have been several meetings with the various concerned parties in Germany to discuss the implications of the legislation, and officials of my Department and of the Office of the Revenue Commissioners are currently monitoring developments in Germany in this matter. The final outcome of this proposal will not be known until the end of this month when it is voted on in the Federal Senate.
