Dáil Éireann Debate, Wednesday - 20 September 2017
158. Deputy Pearse Doherty asked the Minister for Finance his views on recent EU tax proposals backed by France, Germany, Spain and Italy which would see big multinationals taxed on turnover as opposed to the current system which taxes them on profits, particularly in view of Ireland's economic reliance on US multinationals with their European headquarters here. [39308/17]
View answerIreland remains committed to global tax reform and believes that global solutions are needed to ensure tax is paid by companies where value is created. That is why Ireland has been a committed participant in, and strong supporter of, tax reform efforts led by the OECD through the BEPS process.
The OECD is already carrying out important research into the digital economy, with the publication of its interim report expected in Spring 2018. This will provide important input into the ongoing consideration of where value is created in digital business.
It would be premature to take action without considering the OECD analysis and for that reason I do not support the recent proposal to move ahead of the OECD process through the introduction of an equalisation tax based on turnover.
A consistent global approach is needed, as these digital companies are global in nature. Any solution must build on a shared understanding of where value is actually created by digital business. Applying different rules within the EU to what is being applied globally is likely to result in double taxation and greater uncertainty.
Multinationals will always want to have operations in the EU, and Ireland will remain very competitive and attractive as an EU location to invest in and do business from.
