Dáil Éireann Debate, Thursday - 23 November 2023
182. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which he remains satisfied that the OECD sponsors’ proposals in respect of corporation profits tax in this country and across Europe remains notwithstanding the recent opinion of the ECJ’s advocate general; and if he will make a statement on the matter. [51756/23]
View answerI assume the Deputy is referring to the OECD's two-pillared solution to address the tax challenges associated with the digitalisation of the economy and the recent Opinion of the Advocate General in the Apple Case.
Ireland signed up to the OECD two-pillar agreement in October 2021 and we intend to follow through on that commitment. Our long-standing position is that the international tax system needs to keep pace with changes in how business is now being conducted globally.
With the introduction of domestic Pillar Two provisions in this year’s Finance Bill, we have followed through on that commitment in relation to the Minimum Tax element of the agreement. Transposition of the EU Minimum Tax Directive in Ireland is at an advanced stage with draft legislation included in this year’s Finance Bill making its way through the Houses of the Oireachtas currently.
The technical work on Pillar One is nearing completion at OECD level. A draft of the the Multilateral Convention and Explanatory Statement for Pillar One was recently published by the OECD that demonstrates the substantial progress that has been made on all aspects of the agreement over the two years. I look forward to finalising the publication of the MLC and its opening for signature in due course. For the benefits of the agreeement to be fully realised it will be important for all countries to move forward together to implement Pillar One globally.
Throughout the negotiations of the OECD Agreement, Ireland has sought to provide certainty for businesses and to protect our strategic interests and to ensure that we remain an attractive location when MNEs look to invest. Ireland continues to support the full implementation of the OECD agreement as a mechanism that will bring that long term stability and certainty to the international tax framework globally.
In 2016, the European Commission issued a Decision finding that Ireland had provided State aid to Apple. Ireland challenged this decision before the General Court of the European Union (GCEU).
In 2020, the GCEU issued its judgment which annulled the Commission’s State aid decision of 2016. The Commission appealed the GCEU judgment to the Court of Justice of the European Union (CJEU) and, on 23 May 2023, the CJEU heard the appeal.
The Advocate General’s Opinion on the Apple case was published on 9 November 2023. The Advocate General analyses the legal aspects of the case in detail and, separately from the deliberations of the Court, provides an Opinion regarding the issue being heard. It is however important to bear in mind that this Opinion does not form part of the Court of Justice of the European Union judgment but is considered by the Court when arriving at its final ruling. The timing of the judgment is at the discretion of the Court.
