Dáil Éireann Debate, Tuesday - 27 July 2021
404. Deputy Brendan Griffin asked the Minister for Finance if he will provide an update on the public consultation process on corporation tax; if he has received submissions from County Kerry; and if he will make a statement on the matter. [40679/21]
View answerYou may be aware that on 1 July 2021, the OECD Inclusive Framework reached agreement, but not consensus, on key aspects of the two-pillar solution to address tax challenges arising from digitalisation and globalisation. Pillar One proposes a re-allocation of a proportion of tax to the market jurisdiction, while Pillar Two seeks to apply a global minimum effective tax rate.
Ireland is supportive of the Pillar One proposals to re-allocate a proportion of taxing rights to market countries, recognising that the international tax framework must evolve to accommodate changes in how business operates in today’s digitalised economy. There will be a cost to Ireland for this in terms of reduced corporation tax receipts but, overall, Pillar One will bring stability and certainty to the international tax framework and will help underpin economic growth from which all can benefit.
I have been very clear that Ireland is broadly supportive of the agreement but I signalled a reservation in the respect to a commitment to a rate of ‘at least 15%’ for a global minimum effective tax rate. As a result of this reservation, Ireland was not in a position to join the OECD Statement.
I have consistently said that Ireland wants to be part of the agreement at OECD. However, any agreement must bring certainty and stability.
Given the economic significance of the OECD proposals to Ireland, it is important that there is a dialogue within our political system, with stakeholders and with citizens in respect to these proposals. In that regard, I launched a Public Consultation on the proposed OECD agreement on 20 July.
Interested parties are invited to respond to this consultation on Ireland’s approach to the international tax proposals being discussed at the OECD/G20 BEPS Inclusive Framework and, specifically, in relation to how our approach and those proposals can continue to support economic growth and prosperity.
The consultation period runs until 10 September 2021, and details of how to engage are available on the Department of Finance website.
Given that the consultation does not conclude until 10 September, it is premature to provide an analysis of the submissions received.
