Dáil Éireann Debate, Wednesday - 24 February 2021
181. Deputy Carol Nolan asked the Minister for Finance if he will consider supporting the introduction of a windfall tax of 6% on the major tech organisations such as companies (details supplied) using the UK digital services tax model; and if he will make a statement on the matter. [9702/21]
View answer182. Deputy Carol Nolan asked the Minister for Finance if his Department has carried out an analysis of the UK digital services tax model and its possible application in Ireland; if not, if his Department will do so; and if he will make a statement on the matter. [9703/21]
View answerI propose to take Questions Nos. 181 and 182 together.
The digitalisation of the economy in recent years has brought changes to how business operates and pays tax internationally. Some countries have sought to address this by introducing unilateral domestic digital taxes.
It is my strong belief that addressing the tax challenges arising from digitalisation is a global problem which requires a global solution. That is why I fully support the OECD/G20 BEPS Inclusive Framework process where 139 jurisdictions are working together to find a sustainable solution to addressing the tax issues arising from the digitalisation of the economy. It is hoped that a comprehensive solution will be reached by mid-2021.
Many countries that have introduced digital services taxes domestically also support the OECD process and envisage repealing such domestic digital taxes once global agreement has been achieved.
We have also seen that the introduction of unilateral digital taxes has raised trade tensions globally. A sustainable and equitable global agreement which delivers tax certainty to business and governments is desirable as the world seeks to emerge from the COVID-19 pandemic.
