Dáil Éireann Debate, Wednesday - 15 October 2014
24. Deputy Terence Flanagan asked the Minister for Finance his views on the OECD's base erosion and profit-shifting plan and its implications for Ireland; and if he will make a statement on the matter. [39467/14]
Amharc ar fhreagraI welcome the OECD's base erosion and profit shifting (BEPS) project as a very important multilateral step towards aligning taxing rights with substance and addressing double non-taxation. The seven reports released on the 16th of September represent the first milestone in this two year process. Ireland has been, and will continue to be, actively involved in the working groups on all 15 actions.
As the BEPS process is, as yet, only at its mid-point, it is too early to determine the extent of the implications, however this project should present more opportunities than challenges for Ireland. The alignment of taxing rights with real economic substance has been at the core of Irish economic policy for many years and as I mentioned above is a central concept of the BEPS project.
In terms of the other potential implications of the BEPS project for Ireland I would like to draw your attention to a paper which I released yesterday on BEPS. This paper forms part of the economic impact assessment of Ireland's corporation tax policy carried out by my department over the last year. This paper summarises the current position of the BEPS project, such as the positive findings in relation to the digital economy, that it is not possible to separate the digital economy from the economy as a whole, the interim findings in relation to harmful tax practices, transfer pricing and other technical issues and provides an insight into how the suite of actions could impact upon Ireland.
I would also draw your attention to the recent topical issues debate, tabled by Deputy McGrath, which dealt with this very issue.
