Dáil Éireann Debate, Thursday - 25 January 2024
205. Deputy Brian Leddin asked the Minister for Finance whether any update is anticipated to the 2015 report entitled 'Spillover Analysis Possible Effects of the Irish Tax System on Developing Economies'; and if he will make a statement on the matter. [3530/24]
View answerAs the Deputy will be aware the Department of Finance published an independent economic analysis into the possible effects of the Irish tax system on developing economies in 2015. The analysis, completed by the IBFD on behalf of the Department, was entitled ''Spillover Analysis Possible Effects of the Irish Tax System on Developing Economies' and included a baseline analysis of Ireland's tax treaty network, tax system, and trade and capital flows with developing countries.
On foot of the publication of the report the Government has taken a number of steps to address issues raised, including completing the renegotiation of two specific tax treaties, and has used the analysis to inform Ireland's future interactions with developing countries.
The research has directly fed into the formulation of Ireland's Treaty Policy Statement which was published in June 2022 following a public consultation process and bilateral engagements with a broad range of stakeholders including NGOs.
The treaty policy statement directly addresses policy for treaties with developing countries. The statement contains a commitment to not approach any least developing country, as defined by the UN, in relation to opening discussions on treaties and where Ireland is approached a commitment is made to carry out a spillover analysis to ensure that benefits are likely to accrue prior to agreeing to any such treaty. Where Ireland agrees to a commence negotiations there is a commitment to fully consider the preferences of the partner country regarding source taxation. Accordingly, as this analysis is now incorporated into the Tax Treaty Policy there are no current plans to conduct further more general spill over analysis of this nature at this time.
