Dáil Éireann Debate, Thursday - 7 February 2013
58. Deputy Joe McHugh asked the Minister for Finance his views regarding the international guidelines that govern online firms in respect of corporation tax; if this matter is a subject of discussion at the European Council; and if he will make a statement on the matter. [6489/13]
View answerThe tax practices of multinational corporations, online or otherwise, are currently the focus of work being carried out by a number of international oganisations, in particular the OECD and the EU. There is a broad consensus that responses to this issue need international coordination in order to be effective. Coordination is needed because the problems that arise are typically as a result of the interaction between different tax regimes rather than the law or practice of any one country. In March 2012 the European Council called on the Council and the Commission to suggest ways to improve the fight against tax fraud and tax evasion in the context of Member States budget’s being under pressure. The Commission’s initial response was a Communication adopted in June 2012 which outlined how compliance could be improved and fraud and evasion reduced. The Commission also announced that it would publish an action plan on the suggestions in the Communication and a further complementary initiative on tax havens, non cooperative jurisdictions and aggressive tax planning. This was published on the 6th December and will be discussed at the Council Working Party on Tax Questions during the Irish Presidency.
During the Presidency Ireland plans to devote a number of official-level meetings to this issue. I can confirm to the Deputy that this package of measures will be a priority for the Irish Presidency and that we expect to receive the Council’s backing for the Commission’s package during Ireland’s term.
