I propose to take Questions Nos. 334 to 336, inclusive, and 338 together.
I note the recent publication of the report by the UN High-Level Panel on International Financial Accountability, Transparency and Integrity. Officials in my Department are currently studying the report’s recommendations.
Ireland is committed to the OECD/G20 Inclusive Framework on BEPS, and is one of the 139 jurisdictions working together on an equal footing to address the tax challenges arising from digitalisation. Ireland has seen the benefits of international cooperation and is committed to the ongoing global discussions to address the tax challenges arising from digitalisation. We are hopeful that a sustainable, robust and growth-friendly agreement will be reached this year which meets the needs of all countries, large and small, developed and developing.
As outlined in the update to Ireland’s Corporation Tax Roadmap published earlier this year Ireland is committed to continue to meet international best practices on exchange of information and support efforts to further enhance information exchange.
Tax transparency is key to ensuring fair and effective taxation and Ireland is fully committed to maintaining the highest international best practice standards developed by the Global Forum on Transparency and Exchange of Information for Tax Purposes. It should be noted that of the 78 jurisdictions reviewed to date by the Global Forum on Transparency and Exchange of Information for Tax Purposes, Ireland is one of only a small number of jurisdictions to have been found to be fully compliant with new international best practice.
Ireland is at the forefront of the further development of the International EOI framework both in the EU and in the OECD and is actively working with other jurisdictions including through the EU Fiscalis Programme and the OECD Forum on Tax Administration.
Ireland has been proactive at the OECD in shaping the Model Rules for Reporting by Platform Operators with respect to Sellers in the Sharing and Gig Economy (MRDP) that were agreed July and will bring the sharing and gig economy within the scope of Automatic Exchange of Information (AEOI). Ireland is also active in shaping proposals at EU level such as our proactive participation in developing the various Directives on Administrative Cooperation. For instance, DAC7 which was adopted last week, will extend the EU tax transparency rules to digital platforms. EU Member States will automatically exchange information on income generated by sellers on digital platforms.
Ireland is fully committed to contributing to the development of new reporting rules for crypto-assets and e-Money to complement the Common Reporting Standard. This will feed into a European Commission proposal in this area (DAC8) which is expected towards the end of 2021 and Ireland looks forward to engaging with our EU partners on this proposal.
Ireland supports transparency and good governance for corporates including “country-by-country” reporting by MNEs to national tax authorities. The Finance Act 2015 introduced obligations for relevant companies to report to the Revenue Commissioners in line with agreements on tax transparency agreed as part of the OECD Base Erosion and Profit Shifting project.
In relation to public country by country reporting, a proposal by the European Commission for a Directive to amend Directive 2013/34/EU (the Accounting Directive) as regards disclosure of income tax information by certain undertakings and branches was recently discussed at COMPET Council. Ireland opposed this proposal as the legal base is not in keeping with the Treaties and that as it relates to tax, it should be the responsibility of Finance Ministers to negotiate at the ECOFIN Council rather than at COMPET Council. Ireland’s principled position is shared by a number of other Member States and indeed the Council Legal Service. Notwithstanding Ireland's stated views regarding the legal basis, this proposal now has the necessary support to proceed from COMPET Council. Ireland is engaging constructively in the negotiations on this proposal.
