Micheál Martin
Question:77. Deputy Micheál Martin asked the Minister for Finance if he has concerns regarding Ireland being referred to as a tax haven; and if he will make a statement on the matter. [34340/12]
View answerWednesday, 3 October 2012
Questions (77)
Written answers
The OECD and the international community do not regard Ireland as a tax haven. The OECD identifies four key indicators of a tax haven: the first is having no taxes or only nominal taxes; the second is a lack of transparency; the third indicator is an unwillingness to exchange information with tax administrations of OECD member countries; and the fourth indicator is absence of a substantial activity requirement. None of these criteria apply to Ireland. Ireland has a comprehensive taxation system covering income, capital and indirect taxes and has Double Taxation Relief Agreements with 68 other countries. The January 2011 Global Forum Peer Review Report on Ireland’s legal and regulatory framework for transparency and exchange of information found that Ireland has an effective system for the exchange of information in tax matters and is fully compliant with OECD standards.
The Irish 12.5% corporate tax rate is a general rate for trading income that requires the trade to have real substance and activity. We do not distinguish between small and large enterprises or between enterprises that service the local economy and those that have a multinational focus.
Ireland is bound by the same rules on State Aid, Code of Conduct on Business Taxation, and rulings of the Court of Justice as all EU Member States. Ireland does not support harmful tax competition. Ireland continues to participate fully in the EU Code of Conduct Group, which addresses harmful tax competition, and in the OECD Forum on Harmful Tax Practices.