Dáil Éireann Debate, Wednesday - 26 June 2013
29. Deputy Joe McHugh asked the Tánaiste and Minister for Foreign Affairs and Trade if he will update Dáil Éireann on his Department's recent engagements in the USA in respect of promotion of Ireland's corporation taxation structures; and if he will make a statement on the matter. [30490/13]
View answer30. Deputy Joe McHugh asked the Tánaiste and Minister for Foreign Affairs and Trade if he will update Dáil Éireann on the response of his Department to recent commentary in the United States of America regarding Ireland's corporate tax regime. [30489/13]
View answerI propose to take Questions Nos. 29 and 30 together.
My Department has worked closely with the Department of Finance, the Revenue Commissioners, and the IDA to address inaccurate references to Ireland’s corporate tax regime arising from a recent hearing held by the US Senate Permanent Subcommittee on Investigations. Although the central focus of the hearing concerned perceived problems in the US tax system, there were also some misleading and inaccurate references to the Irish tax system made during the hearing. The Ambassador of Ireland in Washington D.C. wrote to the Chairman and Ranking Member of the US Senate Subcommittee directly to correct the two most glaring inaccuracies, making it clear that Ireland is not a tax haven and that Ireland does not do special tax deals with companies.
The Embassy of Ireland in Washington D.C. continues to engage with the US Administration, with Members of Congress and with key contacts on these issues. The economic messaging briefing available to the Embassy network across the globe has also been regularly reinforced, in close co-operation with the Department of Finance who, of course, lead on corporate tax policy, following the inaccurate references made during the US Senate Subcommittee hearing.
Ireland supports those countries who are calling for measures to tackle tax fraud and evasion. The only way for such measures to be effective is for countries to work together to examine these issues and to consider how international rules can be amended to ensure fair levels of taxation. This is being done at the appropriate levels in the OECD, through the BEPS (Base Erosion and Profit Shifting) Project. Ireland is fully engaged in that process. At EU level, Ireland has led the way in making sure that significant progress was made in recent months in the area of savings, VAT anti-fraud, aggressive tax planning, and tax fraud and evasion.
In close co-operation with the Department of Finance, the Revenue Commissioners and the IDA, my Department will continue to challenge misleading references to corporate taxation in Ireland through the Embassy network. We have a positive story to tell of Ireland’s transparent and competitive taxation system and of our strong track record of attracting companies of real substance to invest and create thousands of jobs here.
