Dáil Éireann Debate, Tuesday - 8 April 2014
15. Deputy Pearse Doherty asked the Minister for Finance his views on the recent OECD paper the Tax Challenges of the Digital Economy on the taxation of multinational companies and its potential impact on Ireland; and the way he is seeking to influence the debate on global taxation. [16067/14]
View answerI would like to highlight that the OECD paper, to which the Deputy refers, is a consultation document, which was published to generate discussion and to seek the views of interested parties. The consultation period is open until the middle of this month. I would like to stress that the OECD working group which is examining this issue has still not made any decisions on the likely final outcome of their analysis. The paper is very clear in that regard and states, on page 62, "Although the Task Force has initially discussed the proposals, it has not yet reached any conclusions about any of these proposals, which are still in the process of being developed". The paper also discusses the so-called digital economy and examines whether special tax rules might be required. It concludes, on page 24, "the digital economy is increasingly becoming the economy itself, it would be difficult, if not impossible, to ring-fence the digital economy from the rest of the economy". The digital economy is not a specific sector of the economy anymore rather the whole economy is becoming digitalised. Furthermore the paper addresses the issue of electronic commerce and the long-standing taxation principles which apply. Page 6 of the paper concludes "The Task Force considers that these principles are still relevant today and, supplemented as necessary, can constitute the basis to evaluate options to address the tax challenges of the digital economy". Therefore the existing principles remain sound, although there might be a need for changes in certain areas.
I have seen the recent media comment on the potential dangers for Ireland if these proposals were adopted but, while we must always be vigilant, I am reasonably confident that the final proposals to be submitted for OECD approval, will differ from this discussion draft.
My officials as well as their colleagues in the Office of the Revenue Commissioners will continue to engage at the various working groups to ensure that Ireland's views are considered.
